Earnings Preview: Disney

May. 7.12 | About: The Walt (DIS)

Disney (NYSE:DIS) is expected to report Q2 earnings after the market close on Tuesday, May 8 with a conference call scheduled for 5:00 pm ET.


Analysts are looking for EPS of 55c on revenue of $9.56B. The consensus range is 51c-60c for EPS, and $9.09B-$9.74B for revenue, according to First Call. The company forecast FY12 CapEx "a few hundred million higher" than FY11 and said it saw positive advertising trends at both ABC and ESPN. According to Bloomberg, Disney is expected to incur a loss of $200M on the movie "John Carter" as a result of poor ticket sales. However, Marvel Entertainment's "The Avengers" broke box office records in its North American debut this past weekend, earning $200.3M in ticket sales, according to early estimates, making it the highest grossing domestic opening of all time. In April, Rich Ross, the head of Disney's film studio, exited the company, and no successor has been named. The company's Interactive Media Group's games publishing team laid off 10 full and part-time employees.

Analyst Views

Goldman expects Disney will report a "solid" Q2, and expects advertising and theme parks to drive Q2 earnings. The firm's EPS estimate is 58c, above consensus, and views valuation as attractive. Analysts and investors will listen for comments on advertising revenue growth, as well as its expansion plans.