Disney has underperformed the broad markets and is in the bottom third of the Dow. As of the most recent close, the stock is down about 3% year to date. Over the past 52 weeks, the stock is actually up over 7%.
The consensus estimates from Thomson Reuters are $1.15 in earnings per share (EPS) and $13.34 billion in revenue. The fiscal fourth-quarter from last year reportedly had $1.10 in EPS and $13.14 billion in revenue.
It was recently reported that Disney was in talks with Twenty-First Century Fox for some potential M&A. The Mouse House held talks to purchase a large chunk of 21st Century Fox’s entertainment businesses, according to people close to the matter. In a sense Disney is getting serious about adding to its TV operations and having this studio could also help generate more content for its online streaming service.
This comes after Disney said that it would end its distribution agreement with Netflix for Disney- and Pixar-branded movies. The streaming wars have begun, and Disney needs to get it together to compete with the likes of Netflix, HBO or even Hulu.
Here’s what a few analysts said ahead of the earnings report:
- B. Riley reiterated a Neutral rating.
- Citigroup has a Buy rating with a $119 price target.
- Piper Jaffray has a Buy rating with a $130 price target.
- Morgan Stanley has an Overweight rating and a $120 target.
- Barclays has an Equal Weight rating with a $94 price target.
- Guggenheim has a Neutral rating.
- Jefferies has a Hold rating with a $103 price target.
- Rosenblatt Securities has a Hold rating and a $110 price target.
Shares of Disney were last seen up about 1.5% at $102.70, with a consensus analyst price target of $110.32 and a 52-week range of $94.23 to $116.10.