In this week’s earnings call, the company known for delivering storybook endings hopes to do so again. It will be good news for investors when Walt Disney reports its financial results for the Q3 of its fiscal year on Wednesday. In 2022, Disney shares are down 31%, making it the weakest performer in the Dow Jones Industrial Average.

The media giant’s empire has many moving parts. Disney may not be firing on all cylinders these days, but it may be able to show just enough this week to regain market respect.

What’s going on?

There are high expectations for this week’s financial update. Revenue for the fiscal Q3 is projected to be $2.49 billion, a 20% increase over last year. According to Wall Street analysts, adjusted earnings per share are expected to rise 45% to $1.

We are lapping depressing results from a year ago at Disney, which doesn’t usually sport this kind of heady growth. The Disneyland theme park in California wasn’t even open at the start of last year’s fiscal Q3. Currently, Disney’s domestic gated attractions are booming. Disney+ subscriptions also keep growing.

Of course, there are headwinds. A big part of Disney’s business is its media networks, including ABC, Disney Channel, and the majority-owned ESPN. Increasingly, people are cutting the cord from cable and satellite TV plans where Disney receives carriage rights payments.

What to look out for

As a result of the economic downturn, ad spending, which is another major component of media networks, is starting to decline. Lightyear, one of Disney’s most anticipated releases of the fiscal Q3, failed to live up to expectations at the box office.

A rising U.S. dollar will also have an impact. Most of the Disney+ growth has come from overseas lately. Additionally, Disney owns its theme park resort in Paris and significant minority stakes in Hong Kong and Shanghai parks.

In addition to the stronger dollar, currency movements are making it harder for international visitors to visit Disney’s domestic parks just after restrictions were loosened earlier this year.