Earnings Preview: Disney

Aug. 7.12 | About: The Walt (DIS)

Disney (NYSE:DIS) is expected to report Q3 earnings after the market close on Tuesday, August 7 with a conference call scheduled for 5:00 pm ET.


Analysts are looking for EPS of 93c on revenue of $11.3B. The consensus range is 85c-98c for EPS, and $10.78B-$11.67B for revenue, according to First Call. After beating expectations in Q2, Disney said at the Sanford C. Bernstein & Co. Strategic Decisions Conference that its cruise ships business is "solid" and that Parks and Resorts has been a good business for the company. Additionally, Disney forecast ramping down capital investments in domestic parks and resorts and said its Interactive unit will be profitable in 2013. The company said it will opportunistically buy back stock and make acquisitions. Analysts and investors will listen for comments on Dish Network's (NASDAQ:DISH) AutoHop feature, upfront ad sales, as well as how much Disney's children's network benefited from Viacom's (NYSE:VIA) dispute with DirecTV (DTV).

Analyst Views

In July, Wells Fargo upgraded Disney to Outperform from Market Perform as it believes consensus estimates are too low and that the stock could break out of its high $40-range post the upcoming earnings call. Bank of America recently raised its 2013 EPS estimate above the Street based on expectations for improving Parks and Resorts fundamentals, improving Studio outlook, Media Networks growth, and Interactive profitability, among other reasons.