Earnings Preview: Disney

Feb. 6.12 | About: The Walt (DIS)

Disney (NYSE:DIS) is expected to report Q1 earnings after the market close on Tuesday, February 7 with a conference call scheduled for 5:00 pm ET.


Analysts are looking for EPS of 71c on revenue of $11.20B. The consensus range is 66c-76c for EPS, and $10.84B-$11.86B for revenue, according to First Call. Disney reported better-than-expected earnings and revenue in Q4, showing growth in Parks and Resorts and Media Networks segments. The company guided Q4 adjusted EPS 59c and said significant progress was being made expanding in Russia, China and India. The company recently announced plans to acquire a controlling interest in UTV, one of India's premier media and entertainment companies. Disney is also on track to open its first store in China next Fall, and plans to open 25-40 stores in the country over the next three years, said Jim Fielding, president of Disney Stores Worldwide. Disney also announced a long-term distribution agreement with Comcast (NASDAQ:CMCSA), enhancing the multichannel business model and supports the companies' mutual goal to deliver the best video content to customers across multiple platforms using the latest technology and cloud innovation. Additionally, Disney boosted its annual cash dividend by 50% to 60c.

Analyst Views

JP Morgan recently raised its estimates and price target for Disney despite its expectations that the company's Q1 results will be mixed citing an attractive outlook. Analysts and investors will listen for comments on advertising revenue growth, expansion plans, as well as on hotel occupancy rates. In the year-ago quarter, Disney reported adjusted EPS of 68c on revenue of $10.72B.