Entering text into the input field will update the search result below

Disney: Pounding The Table Bullish Ahead Of Q3 Earnings

Aug. 02, 2022 9:00 AM ETThe Walt Disney Company (DIS)29 Comments


  • Disney is set to report its fiscal Q3 earnings on August 10th.
  • Shares have underperformed this year against concerns over consumer spending weakness and broader macro uncertainties.
  • We see room for an earnings beat this quarter to kickstart a new rally higher supported by a positive outlook and solid fundamentals.
  • Looking for more investing ideas like this one? Get them exclusively at Conviction Dossier. Learn More »

Walt Disney World

Joe Raedle

The Walt-Disney Company (NYSE:DIS) has had a rough year dealing with some headline-making controversies in addition to macro headwinds with shares down more than 40% from its 2021 high. Ahead of next week's fiscal Q3 report, we are reaffirming a

Add some conviction to your trading! Take a look at our exclusive stock picks. Click here for a two-week free trial.

This article was written by

Dan Victor, CFA profile picture

Dan Victor, CFA is a market professional with more than 15 years of investment management experience across major financial institutions in research, strategy, and trading roles.

Dan leads the investing group Conviction Dossier, where his focus is on helping investors stay ahead of market trends and inflection points. Dan’s investing vehicles of choice are growth stocks, tactical exchange-traded funds, and option spreads. He shares model portfolios and research to help investors make better decisions, via his Investing Group’s active chat room.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DIS either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (29)

Dan Victor, CFA profile picture
BINGO.. hit that follow buttom to cheer on Q3 earnings
Dan Victor, CFA profile picture
take a look at my latest article.. having some fun at the expense of bears.. bullish on $DIS this week.. good luck to all seekingalpha.com/...
07 Aug. 2022
Lightyear tanked. Thor will breakeven at best, probably lose money. And their next big animated film for the Chirstmas season is 'Strange World' where the main protagonist teen wants is on a quest for sodomy with other male character.

Disney Plus would really tank if their didn't pad their numbers by forcing Indian cricket lovers, and people who want to subscribe to just Hulu to also include Disney plus to their package at no cost.
Disney supports the transgending of kindergarten children, sell.
Im all in DIS...Got out JPM 100% and moved that cash into DIS.

The bull - i think - is going to come from their digital and theaters... not as much from parks or cruiseline.
03 Aug. 2022
@crazy-like-a-fox Do you have a reason for thinking their digital and theaters income will be a positive surprise?
Dan Victor, CFA profile picture
@kjjw Obi-Wan Kenobi and Book of Boba Fett were two of the biggest series this year.. its a big reason for Star Wars fans to sign up
nerd_rage profile picture
@BOOX Research Sign up, binge watch, bail. Disney+ needs to broaden their content library. They are risking increased churn. The same problem that hit NFLX - competition getting more impressive - also applies to them.
Dream Big profile picture
A strong global brand with a long history can survive a lot of crisis and even a bad management. I stay on board
@Dream Big yup - not a fan of chapek. his management of the parks is disgusting and "woke". but im all in
Richard Berger profile picture
Full parks won't drive Disney share prices at this point. Streaming is replacing traditional media distribution quickly and content is king for streaming services. Disney is sure to be a long term winner there. However, Disney cash flows are back to pre-Covid level but the company is silent on returning from its suspended dividend. I think there is little upside from money inflow until/unless Disney gives a clear path to return of the dividend.
Dan Victor, CFA profile picture
@Richard Berger look at the ESPN+ numbers.. 22 million subs and they hiked the rate $3.00 a month.. thats $800 million extra revenue per year.. not bad.. they can do the same with Disney+, its a must have platform for parents.. the kids love it
nerd_rage profile picture
@Richard Berger DIS needs to get grownup content on Disney+ (from Hulu, payoff CMCSA early if needed, and from Fox/FX) before they get hit with churn.
nerd_rage profile picture
@BOOX Research Will sports fans stand for a price hike like that? Sports fans are a captive audience. If DIS can get away with it because they also have a captive audience for kids' entertainment and parents can never cancel, that would be impressive.
“The parks are full” Does that include Shanghai,Hong Kong and Tokyo?
Dan Victor, CFA profile picture
@DivyLover apparently Shanghai has reopened.. the asia parks are a smaller part of the business anyways but it highlights the upside as conditions normalize through next year
@BOOX Research “normalize “. Even if there is a global economic slowdown? What if due to political considerations Chinese consumers don’t consume US products? Additionally there are more certain headwinds on the horizon: expiration of the Mickey Mouse trademark as well as essentially the obligation to buy the portion of Hulu they don’t own for $24B.
Theme parks are packed.But that’s not going to last if the economy slows. These are very expensive trips that can always be put off to next year.

Also I’m concerned with their film business. The bloom is off the Marvel rose. Pixar is not the powerhouse it used to be. These live action remakes of classics goes to show a lack of creative ambition.

I guess streaming is the hope? Still waiting to see how it actually turns into huge profits. It requires huge investments and has a lot of competition.
nerd_rage profile picture
@Sixbits Live action remakes of classics have been highly profitable:

Aladdin, $1B


Beauty & the Beast, $1.2B


If you want creativity, don't look at DIS. They make fodder for the masses, not art.
@Sixbits You are missing that parks are packed while international travel is still recovering and global population is still growing. Parks attract consumers from all over the world. If anything, Disney cant grow parks fast enough even wih a slowing economy.
"We see room for an earnings beat this quarter to kickstart a new rally higher supported by a positive outlook and solid fundamentals." With no div and management shooting itself in it's FL foot, shareholders are desperate for a kickstart. Better be a big "room".
@porbit28 Disney has room to rebound some but I fortunately dumped most of my shares at $140 not long ago when Chapek decided to oppose parents in Florida school curriculum. I don't invest in stupid management that doesn't recognize parents and children are their primary customers.
Dan Victor, CFA profile picture
@tlapp i really believe that this narrative has held the stock back.. BUT don't see it actually impacting financials.. Disney raises prices on everything and the mouse faithful keep paying.. the parks are packed.
@BOOX Research Simple reasons for simpletons. Forget about rationality even more whenever politics come into play. I saw the dip as a great buying opportunity.
Dan Victor, CFA profile picture
Thanks for reading. If you enjoyed the article consider following to hear about our next Seeking Alpha idea. - BOOX
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!

About DIS

SymbolLast Price% Chg
Market Cap
Yield (TTM)
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on DIS

Related Stocks

SymbolLast Price% Chg
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.