Media

What Analysts Are Saying About Disney After Earnings

Chris Lange

Published: August 9, 2018 1:55 pm

Last Updated: January 11, 2020 7:37 pm

When Walt Disney Co. (NYSE: DIS) reported its most recent quarterly results late on Tuesday, investors sent the stock lower, noting a miss on both the top and bottom lines. Analysts seemed more understanding and had a decent reaction to the report.

24/7 Wall St. has included some brief highlights from the earnings report, as well as what analysts are saying after the fact.

The Mouse House said that it had $1.87 in earnings per share (EPS) and $15.23 billion in revenue for the fiscal third quarter. The consensus estimates were calling for $1.95 in EPS and $15.34 billion in revenue, and the same quarter of last year reportedly had $1.58 in EPS and $14.24 billion in revenue.

In terms of its segments, Disney reported as follows:

• Media Networks revenues for the quarter increased 5% to $6.2 billion and segment operating income was comparable to the prior-year quarter at $1.8 billion.
• Parks and Resorts revenues for the quarter increased 6% to $5.2 billion and segment operating income increased 15% to $1.3 billion.
• Studio Entertainment revenues for the quarter increased 20% to $2.9 billion and segment operating income increased 11% to $708 million.
• Consumer Products & Interactive Media revenues decreased 8% to $1.0 billion and segment operating income decreased 10% to $324 million.

For the fiscal fourth quarter, analysts are looking for EPS of $1.40 and revenues of $13.85 billion. For the full year, the consensus estimates are $7.07 per share and $59.03 billion.

Here’s what analysts are saying about the report:

• RBC reiterated a Buy rating with a $140 price target.
• Imperial Capital has an Inline rating and raised its price target to $112 from $108.
• BMO Capital Markets maintained a Market Perform rating but raised its target to $110 from $100.
• Merrill Lynch maintained a Buy rating with a $144 price target.
• B. Riley upgraded it to Buy from Neutral but lowered its target to $121 from $123.

Shares of Disney were last seen trading at $114.44, with a consensus analyst price target of $119.07 and a 52-week trading range of $96.20 to $117.90.