Global entertainment and media company Disney (NYSE: DIS) will be announcing earnings results this Monday before market open. Here’s what investors should know.
Disney missed analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $22.46 billion, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a miss of analysts’ Sports revenue estimates.
Is Disney a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Disney’s revenue to grow 4.4% year on year to $25.78 billion, in line with the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Disney has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Disney’s peers in the consumer discretionary segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Scholastic delivered year-on-year revenue growth of 1.2%, missing analysts’ expectations by 1%, and Nike reported flat revenue, topping estimates by 1.7%. Scholastic traded down 6.2% following the results while Nike was also down 10.5%.
Read our full analysis of Scholastic’s results here and Nike’s results here.
Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Disney is up 1% during the same time and is heading into earnings with an average analyst price target of $132.23 (compared to the current share price of $112.99).
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