Walt Disney Co (DIS)

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Earnings Preview: Walt Disney Co. (NYSE: DIS)
By: 24/7 Wall St. | February 7, 2023

• Here is a look at what to expect when the following four firms share their results after U.S. markets close on Wednesday.

Disney

Over the past 12 months, Walt Disney Co. (NYSE: DIS) has seen its share price decline by more than 22%. Since Disney brought back CEO Roger Iger in mid-November, the stock price has risen by more than 12%, but Disney’s difficulties run much deeper. What will matter when the Dow component reports first-quarter results is what Iger plans to do to right the ship. The company has come under attack from Florida Governor Ron DeSantis, who wants to strip Disneyworld of its special tax status, streaming growth has slowed and Steamboat Willie has lost trademark protection.

Analysts remain solidly bullish on the stock. Of 30 brokerages covering the firm, 25 have a Buy or Strong Buy rating and the rest rate the shares at Hold. At a price of around $110.00 a share, the upside potential based on a median price target of $120.00 is about 9.1%. At the high target of $177.00, the upside potential is nearly 61%.

First-quarter fiscal 2023 revenue is forecast at $23.29 billion, up 15.6% sequentially and 6.7% higher year over year. Adjusted EPS are pegged at $0.79, down 164.5% sequentially and by 25.5% year over year. For the fiscal year ending in September, analysts expect Disney to report EPS of $4.15, up 17.7%, on sales of $90.57 billion, up 9.5%.

Disney stock trades at 26.4 times expected 2023 earnings, 20.6 times estimated 2024 earnings of $5.33 per share and 17 times estimated 2025 earnings of $6.46 per share. The stock’s 52-week range is $84.07 to $157.50. The Mouse House does not pay a dividend, and total shareholder return for the past year was negative 22.64%.

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