Earnings Preview: The Walt Disney Co.

The Walt Disney Co. (DIS) is expected to report Q4 earnings after the market close on Thursday, November 12 with a conference call scheduled for 4:30 pm ET.

Guidance

Analysts are looking for a profit of 40c on revenue of $9.26B. The consensus range is 34c-53c for EPS, and revenue of $8.8B-$9.79B, according to First Call. During the quarter, Disney announced plans to acquire Marvel Entertainment (MVL) for $50 per share in a cash and stock transaction. The company also announced an agreement with Netflix (NFLX) to stream some movies and said it will build a new production facility in California, adding about 2,854 production jobs and over 3,000 construction jobs. There has been a shake up at the company's movie studio following the departure of chairman Dick Cook in September and Miramax Films head Daniel Battsek. Also, Mark Zoradi, president of the Walt Disney Studios Motion Pictures Group, resigned this month.

On October 1, the Wall Street Journal reported that a new Disney technology called Keychest, which aims to allow entertainment companies to change customer viewing habits where they use computers and cell phones, and not DVDs or TV, is expected to be unveiled this month. The Telegraph reported on November 9 that Euro Disney, which has been battered by the downturn, is expected to post a sharp decline in revenue.

Analyst Views

Cowen analyst Doug Creutz believes Disney may take a loss of $50M-$100M in the quarter following the relatively weak opening for its 3-D remake of the classic "A Christmas Carol." He said the weak opening increases the likelihood the company will fall short of estimates. Disney shares rose 18% over the quarter.