by Ian Harvey
November 05, 2019
Walt Disney will report earnings Thursday after the market closes. The consensus earnings estimate is $0.94 per share on revenue of $19.29 billion; but the Whisper number is higher at $0.97 per share. Should you buy? Find out what to do?
DIS is one of the biggest brands in the world,
a leader in its industry, a master of marketing, which has a multigenerational
history of cultivating assets will report after the
market closes, at approximately 4:05 PM ET, on Thursday, November 7, 2019. The
consensus earnings estimate is $0.94 per share on revenue of $19.29 billion;
but the Whisper number is higher at $0.97 per share.
Consensus estimates are for earnings to decline year-over-year by 36.49% with revenue increasing by 34.83%.
For the last reported quarter, it was expected that Disney would post earnings of $1.76 per share when it actually produced earnings of $1.35, delivering a surprise of -23.30%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Disney is an even larger and more complex company than it was a year ago, with different factors underpinning its performance; such as.....
Disney stock had returned 22% this year including dividends through last Friday’s close. That is behind the S&P 500’s 23% return, but ahead of Disney’s media competitors’ stocks.
And now, Walt Disney is challenging other streaming companies with its highly anticipated streaming service Disney+ which has a massive library of iconic content.
Dependable television comedies with large back catalogues have been a key driver of success for streaming services as viewers binge on “comfort viewing” staples.
Disney+ is set to launch in the U.S. on Nov. 12 at a cost of $6.99 a month or $69.99 annually, about half the cost of Netflix.
Platforms have shelled out massive amounts for shows like The Office, Friends, and Seinfeld and reaped the rewards from repeat viewers.
But the soon-to-launch Disney+ streaming service is set to feature one iconic show that could outdo them all.
Thirty full seasons of The Simpsons will join a massive content library that also features hits like the Star Wars franchise, Marvel movies and a huge back catalogue of Disney and Pixar animated titles.
All up, Disney+ will stream 662 episodes of the long-running series (more than The Office, Friends and Seinfeld combined).
Other Factors to Affect Disney.....
Disney continues to dominant at the box office.
Disney theme parks have seen new worlds opened, as well as raising prices.
Disney made an $81.2 billion move to buy the majority of 21st Century Fox’s (FOXA) entertainment assets to stem the exodus of viewers to the likes of Netflix (NFLX) and Amazon.com’s (AMZN) Prime Video.
Wall Street analysts are bullish on the stock: Seven equities research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the stock. No analysts rate Disney at Sell. Their average target price is $154.64, almost 17% above its recent $132.92.
Shares of Disney have now easily crushed NFLX over the last 12 months, up 12% against the current streaming king’s 9.5% decline. More specifically, DIS stock saw a massive spike directly after it provided a slew of Disney+ details during its April 11 Investor Day.
Disney’s Q4 fiscal 2019 revenue is projected to soar 33% to reach $19.03 billion. This estimate includes Disney’s Fox deal and its Hulu ownership, which were included for the first time last quarter, when revenue jumped 33%.Therefore, the company’s Q1 2020 revenue is projected to surge 38.8%, with 2020 expected to come in 16.3% higher than the 2019 estimate at $80.55 billion
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Stock Options Made Easy “Cut-to-the-Chase” members entered an option call trade on Disney on October 15 which is already up 72%.
Also, “Earnings Predictions” members entered a trade yesterday which is already up 25%.
The question remains: “Will we exit these trades before earnings, or wait, and hope for more profits?”
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!