Walt Disney Co. (NYSE: DIS) is scheduled to report its fiscal fourth-quarter financial results after the markets close on Thursday. The consensus estimates from Thomson Reuters call for $1.14 in earnings per share (EPS) on $13.55 billion in revenue. In the same period of the previous year, the entertainment giant posted EPS of $0.89 and $12.39 billion in revenue.
This top consumer media company got absolutely hammered after its third-quarter earnings were less than expected, prompting a big fear that consumers are “cutting the cable cord.” The movie studio business is poised to improve, as with accelerating theme park business, and the network programming continues to drive viewership with extensive sports programming. Most importantly, Disney produces tons of content that will keep it a long-term media alternative, and recently announced that Star Wars-themed lands will be coming to Disneyland and Disney’s Hollywood Studios at Walt Disney World Resort in Orlando, Fla.
The Disney Media Networks segment operates broadcast and cable television networks, domestic television stations and radio networks and stations, and it is involved in television production and television distribution operations. Its cable networks include ESPN, Disney Channels and ABC Family, as well as UTV/Bindass and Hungama. Disney is also one of 24/7 Wall St. top 10 stocks to own for the next decade.
Ahead of earnings, a few analysts weighed in on the Mouse House:
- Topeka Capital Markets has a Buy rating but lowered its price target to $136 from $138.
- FBR reiterated a Buy rating with a $124 price target.
- Merrill Lynch reiterated a Buy rating.
- RBC Capital reiterated an Outperform rating with a $130 price target.
- Nomura has a Buy rating but lowered its price target to $121 from $125.
So far in 2015, Disney has outperformed the market, with the stock up nearly 21% year to date. Over the past 52 weeks, the stock is up nearly 28%. Disney is one of the top five performing Dow stocks in 2015.
Shares of Disney were trading at $112.93 in the noon hour Thursday, with a consensus analyst price target of $118.00 and a 52-week trading range of $88.65 to $122.08.