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Morgan Stanley crunches the numbers on Disney

  • Morgan Stanley digs deep into Disney's (DIS -0.3%) projected earnings before trimming a few cents off of its FQ3 estimate, $1.13 vs. $1.16 MS prior, $1.16 Street consensus, and $1.21 on Estimize.
  • The investment firm sees a big boost from Frozen to profit at the Consumer Products and Studio Entertainment segments, but thinks lower deferred revenue recognition at ESPN will work in the opposite direction.
  • Though the lasting impact of  Frozen will be a big topic in Disney's earnings release, MS reminds that last year's quarter was nearly as robust with both Iron Man 3 and Monster University contributing.
Comments (4)
  • scott trader
    , contributor
    Comments (4500) | Send Message
     
    As was reported earlier the intoduction of abc on apple tv shows the possibilities of a growing relationship between Disney and Apple ...Both are class A companies with continuous growth and great innovative strategies that will propel them far into the future.
    24 Jun, 03:47 PM Reply Like
  • alpha5050
    , contributor
    Comments (8) | Send Message
     
    Far be it from me to argue with MS. However, there is so much positive news from Frozen and the little ones see it numerous times. I also understand that DIS is blowing the doors off with The World Cup. This being the case, I think DIS is doing & will do just fine.
    24 Jun, 04:18 PM Reply Like
  • nautor42
    , contributor
    Comments (151) | Send Message
     
    Frozen's still kicking butt in Japan, $234m and counting. Been the top movie there since it's release. Ratings for World Cup are way up, so let's hope the USA stays in it. But not sure how that deferred rev thing works, so don't know if that will hit the bottom line in FQ3. Plus Maleficient has cracked it's nut and is profitable. Let's not forget Capt America, which hits FQ3. The worry is resorts and park revenue and earnings. Be interesting to see what their guidance is for that in Q4 given gas prices and slow consumer spending. What I'm most hoping for is that DIS has a plan to make ABC a contributor rather than a drag.
    24 Jun, 05:22 PM Reply Like
  • 19206941
    , contributor
    Comments (4) | Send Message
     
    A few comments:
    -- Maleficent will surpass $200 million in domestic box office and has also done very well internationally. I think it surpasses studio expectations.
    -- Frozen, as mentioned, continues to be a cash cow -- especially from the merchandising side
    -- Theme park attendance has been up, and in China, the Park there is now turning a profit and will generate lots of money for the company. Theme park performance has always meant a lot to Disney's bottom line.
    -- Consumer products are doing well (Frozen), and this has also been a big driver for Disney's earnings.
    -- This was supposed to be a "quiet" quarter for Disney (it's really all about 2015 -- with the Avengers sequel, two new Pixar movies and the first Star Wars moving coming), but it's anything but. I also look for Guardians of the Galaxy to do very well.

     

    Disney will eventually be over $100/share. I'm not sure exactly when, but it will happen.
    25 Jun, 09:57 AM Reply Like
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