Will Disney (DIS) Produce Another Earnings Beat?

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Entertainment company Walt Disney (DIS) reports fiscal third-quarter earnings August 6. The company will release its quarterly numbers after the market close with the consensus calling for earnings of $1.76 per share on revenue of $21.68 billion, versus $1.87 on $15.23 billion during the same period last year. The stock is up 28.6% on the year.

Technical Analysis

DIS stock was recently trading at $140.99 down $6.16 from its 12-month high and $40.64 above its 12-month low. InvestorsObserver’s Stock Score Report gives DIS a 94 long-term technical score and a 75 short-term technical score. The stock has recent support above $135 and recent resistance below $147. Of the 15 analysts who cover the stock 11 rate it Strong Buy, 1 rate it Buy, 3 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, DIS gets a score of 70 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Disney has been a top performer over the last year, with shares trading just shy of their all-time high. Disney has been enjoying strong box office success, and its studio success and strong theme park numbers have helped keep the company growing despite cord cutting that has cut into the company’s pay TV segment, in particular its sports network ESPN. Earnings have been on the rise, with profits up 9.3% over the last five years. The big news for Disney as of late was the blockbuster success of its latest Marvel franchise movie earlier in the year. Endgame has passed Avatar to become the highest-grossing movie of all time. Aladdin also released over the summer and has already surpassed $1 billion at the box office. Wall Street will also pay attention to ESPN subscriber numbers. ESPN subscribers have been falling, but analysts believe subscriber numbers should start to stabilize. The stock is already up 28% on the year, and analysts see additional upside with a price target of $148.73 on the stock.

About The Walt Disney Company

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm, and also operates media networks including ESPN and several TV production studios. Disney recently reorganized into four segments with one new segment, direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+, and the Disney SVOD service. The plan also combines two current segments, parks & resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.

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