Walt Disney (DIS): As always ESPN subscription numbers fall front and center when Disney announces quarterly results. The multimedia sports network continues to face an uphill battle in light of cord cutting behaviors and wider adoption of skinny bundles. Operating income from Cable Networks decreased $207 million during Q4 due to decreases at ESPN and Disney Channel. Growth at Freeform (formerly ABC Family) helped offset some of these losses through lower programming and production costs, and a decrease in marketing expenses. Income from broadcasting, on the other hand, increased $60 million to $224 million, on greater program sales from shows such as Luke Cage and Quantico. However, the overall performance of media networks is still predicated on the performance of ESPN, which otherwise looks bleak.

Beyond media, performance in Studio Entertainment and Parks and Resorts continues to excel on the back of blockbuster movies that also translate to attractions at the theme parks. Studio entertainment is likely to see a huge uptake in Q1 from the roaring success of Star War Rogue One. And while the economy improves and travel trends start to pick up that plays into the hands of Parks and Resorts. Both divisions posted positive growth in the fourth quarter and remain on track to do so again.

Disney also generates a large portion of total revenue from consumer products and interactive media which includes licensed merchandise. Sales from this division saw considerable pressure last quarter as revenue dropped 15% and income declined 5%. The company quickly pointed to currency headwinds and the discontinuation of the Infinity console game business for the lackluster performance. With the dollar trending close to a short term high, it’s unlikely Disney does a complete 180 this quarter.

Gilead Sciences (GILD): Tomorrow’s report once again highlights the performance of new HIV and HBV products but above all else, the HCV franchise will draw most of the attention. In the third quarter sales of Harvoni, Sovaldi and Epclusa fell to $3.3 billion compared to $4.8 billion from a year earlier. Management blamed the decline in Harvoni and Sovaldi sales on the introduction of Epclusa in key U.S. and European market but the more likely culprit is Merck’s entry into the Hep C market. Merck’s aggressive pricing strategy stole a considerable amount of the Hep C market that Gilead once cornered.