What to Watch When Disney Reports Tuesday

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Walt Disney Co. (NYSE: DIS) is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $1.75 in earnings per share (EPS) and $21.47 billion in revenue. The same period of last year reportedly had $1.87 in EPS and $15.23 billion in revenue.

Despite recent market headwinds, this stock has continued outperforming on a near-term and long-term basis. With the movie studio business poised to improve, as with accelerating theme park business, the network programming continues to drive viewership with extensive sports programming. Combine that revenue growth with the company’s solid media networks and interactive presence, and the 2019 and 2020 revenue estimates could be conservative.

Not to mention, Disney has made an absolute killing in theatres this year with big hits like “Avengers: Endgame,” “Captain Marvel” and “The Lion King.” Last week, Disney broke its annual worldwide box office record, taking in roughly $7.67 billion after only seven months. Keep in mind that the newest Star Wars movie will be coming out in December too.

Separately, 24/7 Wall St. has made the case that Disney is a stock to own for the next decade.

Excluding Monday’s move, Disney had outperformed the broad markets, with its stock up about 29% year to date. In the past 52 weeks, the stock was up closer to 25%.

A few analysts weighed in on Disney ahead of Tuesday’s results:

  • Merrill Lynch has a Buy rating with a $168 price target.
  • Loop Capital has a Buy rating and a $165 price target.
  • Morgan Stanley rates it as Overweight with a $160 target.
  • Citigroup’s Buy rating comes with a $160 price target.
  • Credit Suisse has a Neutral rating and a $130 price target.

Shares of Disney traded down about 2.7% on Monday to $137.92, in a 52-week range of $100.35 to $147.15. The consensus price target is $151.65.


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