Earnings Expectations From Disney (DIS)

On Tuesday, we’ll get to see earnings out of Walt Disney Co. (NYSE:DIS). The estimates from First Call for the entertainment giant are $0.52 EPS on $10.04 billion in revenues.  Estimates for fiscal September 2008 are $2.13 EPS on $37.04 billion in revenues.

Analysts have an average price target north of $38.  The chart on this one has been rather ugly with only the last two weeks being a period of relief.  Shares are currently under the 50-day moving average of $31.26 and well under the 200-day moving average of $33.24.  If Monday’s trading prices are any indicator and were left static, it appears that options traders would be pricing in a move of up to $0.50 to $0.55 in either direction.

We have even made a hint at Disney being nearly recession proof, although recession-resistant is probably more appropriate.  We still wonder if Disney is putting its Hannah Montana brand at risk over the Wal-Mart outlet sales, although maybe that means it’s already peaked if you can find idiot parents willing to spend hundreds of dollars for one ticket for their kid to see a concert.  Despite some recalled toys from Chinese lead paint, Disney is expected to be mostly insulated from that issue.

Walt Disney’s 52-week trading range is $26.30 to $36.79.

Jon C. Ogg
February 4, 2008