Earnings Preview: Walt Disney

| About: The Walt (DIS)

Walt Disney Co. (NYSE:DIS) is scheduled to report its Q3 2012 results on August 7, 2012, after the bell. The street expects EPS and revenue of $0.93 and $11.30B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from DIS and the news from its closest competitors.

Walt Disney Co. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.58 EPS, beating analyst estimates of $0.55.

Walt Disney Co. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.93 based on 27 analysts' estimates, up from $0.78 a year ago. Revenue estimates are $11.30B, up from $10.68B a year ago. The median target price by analysts for the stock is $51.50.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 10, 2012, Caris & Company downgraded the company from Buy to Above Average.
  • On May 9, 2012, Barclays reiterated Equal Weight rating for the company.
  • On March 20, 2012, Wunderlich reiterated Hold rating for the company.

Latest News

  • On July 9, 2012, The Wall Street Journal reported that Comcast Corp. is near a deal to sell its 15.8% stake in A&E Television Networks to joint venture partners The Walt Disney Company and Hearst Corp for about $3 billion, according to two people familiar with the matter.
  • On June 6, 2012, Reuters reported that The News Corporation has taken full control of its Asian joint venture ESPN STAR Sports (ESS), buying out The Walt Disney Company's 50% share to end a 16-year partnership in the region.
  • On May 31, 2012, The Walt Disney Company announced that Alan Horn has been named Chairman of The Walt Disney Studios effective June 11, 2012.
  • On April 19, 2012, Reuters reported that Apple Inc, Google Inc, Intel Corp and four other technology companies were ordered by a judge to face an antitrust lawsuit claiming they illegally conspired not to poach each other's employees.


IMAX Corporation (NYSE:IMAX), Lions Gate Entertainment (LGF), The Madison Square Garden Company (NASDAQ:MSG), News Corp. (NASDAQ:NWS), and Time Warner (NYSE:TWX) are considered major competitors for Walt Disney and the table below provides the key metrics for these companies and the industry.

Walt Disney Co. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

DIS Chart

DIS data by YCharts

Competitors' Latest Development

  • On July 27, 2012, IMAX Corporation announced an agreement for three IMAX theatre systems. The deal brings VieShow's IMAX commitment to 10 and to 232 the total number of IMAX theatres open or contracted to open in Greater China, of which 97 are currently in operation.
  • On July 16, 2012, IMAX Corporation and AMC Entertainment Inc announced an expansion of the companies' existing joint revenue sharing arrangement to include the installation of eight confirmed and up to 18 IMAX theatres in the United States.
  • On July 16, 2012, IMAX Corporation and TGV Cinemas Sdn Bhd (TGV Cinemas), announced an expansion of the parties' joint revenue sharing agreement announced in October 2011 to include the installation of seven additional IMAX theatre systems. deal brings to eight the exhibitor's total IMAX commitment and brings to 321 the total number of IMAX theatres open or contracted to open in the Asia Pacific region.
  • On June 27, 2012, IMAX Corporation and Frank Theatres, a division of the Frank Entertainment Company (1906), announced a revenue sharing agreement for 10 IMAX theatres to be installed into existing complexes and new construction projects located throughout the U.S. Under the terms of the agreement, Frank Theatres will open four IMAX theatres in November in York, Pa.; Southern Pines, N.C.; Delray Beach, Fla.; and Northfield, N.J. Two additional theatres are slated to open May 2013 in Ranson, W. Va. and Kingsport, Tenn.
  • On June 9, 2012, Time Warner Inc announced that it has priced a $500 million underwritten public offering of 3.40% senior notes due 2022 at a price equal to 99.857% of their face amount and a $500 million underwritten public offering of 4.90% debentures due 2042 at a price equal to 98.929% of their face amount.
  • On June 8, 2012, Time Warner Inc announced that it has commenced an underwritten public offering of up to $1 billion of debt securities split between senior notes due 2022 and senior debentures due 2042.
  • On June 7, 2012, IMAX Corporation and Omnijoi Cinema Development Co., Ltd. (Omnijoi Cinemas), formerly known as Jiangsu Eudemonia Blue Ocean Cinema Development Co., Ltd., announced an agreement to install five IMAX theatre systems into new construction projects throughout China.
  • On May 2, 2012, Time Warner Inc reaffirmed fiscal 2012 earnings guidance and expects full year percentage growth rate in adjusted diluted net income per common share (adjusted EPS) to be in the low double digits off a 2011 adjusted EPS base of $2.89. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $3.19 for fiscal 2012.
  • On May 1, 2012, Time Warner Inc announced that its Board of Directors declared a regular quarterly cash dividend of $0.26 per share on its Common Stock, payable in cash on June 15, 2012, to stockholders of record at the close of business on May 31, 2012.
  • On April 26, 2012, Abbey Spanier Rodd & Abrams, LLP announced that United States District Court for the Southern District of New York has approved the following summary notice of a proposed U.S. class action settlement on behalf of purchasers of common stock of IMAX Corporation.
  • On April 12, 2012, The Madison Square Garden Co and Swiss Watchmaker Tissot announced their first marketing partnership, as Tissot becomes the 'Official Timepiece of Madison Square Garden.' This alliance will provide Tissot with brand integration at The Famous Arena, including New York Knicks and New York Rangers games and on the building's 7th and 8th Avenue Marquees.
  • On April 4, 2012, IMAX Corporation And Empire Theatres Limited announced that a joint revenue sharing agreement to install up to three IMAX theatre systems in Canada, with the first theatre to be located at the Empire Empress Walk 10 Cinemas in Toronto, which is slated to open in May 2012.
  • On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of Time Warner Inc will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker TWXB11B.
  • On March 15, 2012, IMAX Corporation and Cine Star Cinema Pakistan announced a sale agreement to install three digital IMAX theatre systems into new construction projects in Lahore, Islamabad and Karachi, Pakistan, beginning in 2013.
  • On March 5, 2012, Youku Inc announced that it has signed a licensing agreement with Lionsgate, a diversified global entertainment company. The deal was arranged through Celestial Tiger Entertainment, the exclusive sales agent for Lionsgate in Greater China and Southeast Asia.
  • On February 18, 2012, MSG Media announced that it has reached a tentative agreement with Time Warner Cable Inc for carriage of networks - MSG, MSG+ and Fuse, effective immediately, including tonight's match-up between the New York Knicks and the New Orleans Hornets, as well as the Devils and Sabres games.
  • On February 8, 2012, Time Warner Inc announced that for fiscal 2012, it expects percentage growth rate in Adjusted Diluted Net Income per Common Share (Adjusted EPS) to be in the low double digits off a 2011 Adjusted EPS base of $2.89. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.18 for fiscal 2012.
  • On February 7, 2012, IMAX Corporation announced that it selected Barco to co-develop ground-breaking new laser projection technology for IMAX theatres. The new IMAX digital laser projector will present greater brightness and clarity, a wider color gamut and deeper blacks, and consume less power and last longer than existing digital technology.

Technical Overview

The stock has a market capitalization of $87.26B and is currently trading at $48.67 with a 52 week range of $28.19 - $50.54. The stock's year-to-date performance has been 30.19%. It is currently trading above 20, 50 and 200 SMA. It has been trading in a major uptrend since October 2011.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.