The Walt Disney Company (NYSE:DIS) is set to unveil its fiscal second-quarter earnings on May 10, 2023, after the market closes. As the world continues to recover from the pandemic, Disney’s business units are expected to benefit from cost control measures and a resurgence in customer interest. With an eye on the Direct-to-Consumer segment, including streaming services Disney+, ESPN+, and Hulu, the company is expected to register significant growth, driven by an expanding subscriber base.
Earnings Expectations: Analyzing the Numbers
Wall Street anticipates Disney will report an adjusted profit of $0.95 per share for fiscal Q2, which is lower than the prior-year period figure of $1.08 per share. Nevertheless, revenue is projected to reach $21.8 billion, marking a 7.8% year-over-year increase. This growth reflects the company’s resilience and ability to adapt to the ever-changing entertainment landscape.
Morgan Stanley’s Vote of Confidence
Recently, Morgan Stanley analyst Benjamin Swinburne raised the stock’s price target for DIS from $115 to $120, maintaining a Buy rating. Swinburne believes that Disney has the potential to deliver solid adjusted EPS growth, supported by strong performance in the Parks business. However, the analyst remains concerned about the company’s Media business and its ability to maintain long-term growth.
Consensus Rating: DIS Stock Outlook
Currently, with 18 Buys and three Hold ratings, Walt Disney stock commands a Strong Buy consensus rating. According to TipRanks, the average DIS price forecast of $129.50 implies an upside potential of 25.76% to current levels. This year, DIS stock has gained 15.7%, indicating a promising outlook for investors.
Technical Analysis: Timing the Market
As we approach the Q2 earnings release, technical analysis indicators suggest that now is an opportune time to buy Disney stock. The Moving Averages technical indicator reveals that DIS stock is in an uptrend, with the stock’s 50-Day EMA (exponential moving average) at 99.35 and its current price at $102.97, making it a Buy.
Strategic Improvements: Theme Parks and Streaming Services
Disney’s efforts to enhance its Theme Parks and Streaming services are likely to attract more customers and fuel growth. The company has been investing in innovative attractions, new lands, and immersive experiences at its parks, while also expanding its streaming offerings to cater to diverse audiences. This multi-pronged approach positions Disney for sustained success in the entertainment industry.
Investor Expectations: The Earnings Call
During the upcoming earnings call, investors will be eager to learn about Disney’s progress in reducing losses at its Disney+ streaming business. As the company continues to ramp up content production and explore new markets, the focus will be on how these initiatives translate into financial gains and long-term sustainability.
Conclusion: An Exciting Chapter for Disney
In conclusion, the Walt Disney Company is entering an exciting phase as it prepares to announce its fiscal second-quarter earnings. The company’s focus on cost control measures and the recovery of pandemic-impacted business units is expected to yield positive results. With a growing subscriber base for its Direct-to-Consumer segment and a promising outlook for its Parks business, Disney is well-positioned to capitalize on the evolving entertainment landscape. As the company continues to innovate and adapt, investors and fans alike can look forward to a bright future for this iconic brand.
Maurice Murphy is an esteemed financial journalist renowned for his insightful analysis and comprehensive coverage of earnings and analysts’ estimates in the dynamic world of finance. With an unwavering passion for understanding the intricacies of the global economy, Maurice has dedicated his career to providing accurate and timely information to investors, professionals, and the public alike.
With a deep understanding of financial markets and a keen eye for detail, Maurice possesses a unique ability to dissect complex financial data and distill it into meaningful insights. His expertise lies in interpreting corporate earnings reports, conducting in-depth interviews with industry experts, and scrutinizing analysts’ forecasts to deliver reliable and actionable information.
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