Walt Disney Co (DIS)

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Earnings Preview: Walt Disney Co. (NYSE: DIS)
By: 24/7 Wall St. | August 9, 2022

• Here are previews of three earnings reports due out after markets close Wednesday and one expected first thing Thursday morning.

Disney

Over the past 12 months, Walt Disney Co. (NYSE: DIS) has seen its share price decline by more than 38%. The better news is that since mid-July, the stock has added nearly 19%. Look for the quarterly report after markets close on Wednesday.

Investors will be keeping a sharp eye on streaming subscriber growth because there is not a lot else to look for. The Dow component suspended its dividend two years ago and has not repurchased any stock since 2018. Disney’s goal is 230 million to 260 million total subscribers by September 2024, and strong subscriber additions pushed the total more than halfway to that goal at the end of the March quarter. Theme park revenue is likely to be hurt by inflation.

Analysts remain bullish on the stock. Of 29 brokerages covering the firm, 23 have a Buy or Strong Buy rating on the stock and the rest rate the shares at Hold. At a share price of around $109.10, the upside potential based on a median price target of $130.00 is about 19.2%. At the high target of $229.00, the upside potential is 110%.

Fiscal third-quarter revenue is forecast at $21.01 billion, up 9.1% sequentially and 23.4% higher year over year. Adjusted EPS are pegged at $0.99, down 8% sequentially but up 23.8% year over year. For the 2022 fiscal year ending in September, analysts expect Disney to report EPS of $3.93, up 68.7%, on sales of $84.12 billion, up 24.8%.

Disney stock trades at 27.8 times expected 2022 earnings, 20.2 times estimated 2023 earnings of $5.41 per share and 17.1 times estimated 2024 earnings of $6.39 per share. The stock’s 52-week range is $90.23 to $187.58. Total shareholder return for the past year was negative 38.4%.

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