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We expect entertainment giant The Walt Disney Company (DIS - Analyst Report) to beat expectations when it reports second quarter fiscal 2014 results scheduled for release on May 6, 2014.

Why a Likely Positive Surprise?

Our proven model shows that Disney may beat earnings because it has the right combination of 2 key components.

Positive Zacks ESP: Disney currently has an Earnings ESP of +1.03%. This is because the Most Accurate estimate stands at 98 cents per share, while the Zacks Consensus Estimate is pegged at 97 cents.

Zacks #2 Rank (Buy): Note that stocks with a Zacks Rank #1, 2 and 3 have a higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.

The combination of Disney’s Zacks Rank #2 (Buy) and Earnings ESP of +1.03% makes us confident of a positive earnings beat on May 6.

What is Driving Better-than-Expected Earnings?

Disney is one of the world's major diversified entertainment companies. Moreover, the company commands a formidable portfolio of globally recognized brands, which provide a strong competitive advantage and strengthens its well-established position in the market.

Moreover, Disney’s several content distribution agreements with companies like Comcast (CMCSA - Analyst Report) and Netflix (NFLX - Analyst Report) enhances its multi-channel subscription model by increasing the number of platforms to deliver content.

We believe the company remains well positioned to sustain its robust performance in the long-term on the back of Parks and Resorts, as well as its Studio and Media Networks divisions.

Disney has topped the Zacks Consensus Estimate for the past several years, with a trailing four-quarter average surprise of 6.0%. In the last concluded quarter, the company outdid Zacks’ expectations by 14.3%.

Other Stocks to Consider

Disney is not the only firm we are expecting big things from this earnings season. The following companies are also likely to beat earnings in the to-be-reported quarter:

CST Brands Inc. (CST - Snapshot Report) with an Earnings ESP of +14.29% holds a Zacks Rank #3 (Hold).

Vitamin Shoppe Inc. (VSI - Snapshot Report) has an Earnings ESP of +1.47% and a Zacks Rank #3 (Hold).

Foot Locker, Inc. (FL - Snapshot Report) has an Earnings ESP of +1.91% and a Zacks Rank #3 (Hold).

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