What to Expect When Disney Reports After the Close

By Chris Lange Updated Jan 12, 6:28AM EST · Published Nov 9, 1:30PM EST

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What to Expect When Disney Reports After the Close — © Thinkstock

Walt Disney Co. (NYSE: DIS) is scheduled to release its most recent quarterly results after the markets close on Thursday. While its shares have made big moves recently, the Mouse House still has struggled compared to the rest of the Dow Jones Industrial Average, which is seeing an incredible year. Could this be the earnings report to put Disney back on the right track?

Disney has underperformed the broad markets and is in the bottom third of the Dow. As of the most recent close, the stock is down about 3% year to date. Over the past 52 weeks, the stock is actually up over 7%.

The consensus estimates from Thomson Reuters are $1.15 in earnings per share (EPS) and $13.34 billion in revenue. The fiscal fourth-quarter from last year reportedly had $1.10 in EPS and $13.14 billion in revenue.

It was recently reported that Disney was in talks with Twenty-First Century Fox for some potential M&A. The Mouse House held talks to purchase a large chunk of 21st Century Fox’s entertainment businesses, according to people close to the matter. In a sense Disney is getting serious about adding to its TV operations and having this studio could also help generate more content for its online streaming service.

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This comes after Disney said that it would end its distribution agreement with Netflix for Disney- and Pixar-branded movies. The streaming wars have begun, and Disney needs to get it together to compete with the likes of Netflix, HBO or even Hulu.

Here’s what a few analysts said ahead of the earnings report:

B. Riley reiterated a Neutral rating.
Citigroup has a Buy rating with a $119 price target.
Piper Jaffray has a Buy rating with a $130 price target.
Morgan Stanley has an Overweight rating and a $120 target.
Barclays has an Equal Weight rating with a $94 price target.
Guggenheim has a Neutral rating.
Jefferies has a Hold rating with a $103 price target.
Rosenblatt Securities has a Hold rating and a $110 price target.

Shares of Disney were last seen up about 1.5% at $102.70, with a consensus analyst price target of $110.32 and a 52-week range of $94.23 to $116.10.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.