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Walt Disney (DIS) to Report Q4 Earnings: What's in the Cards?

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The Walt Disney (DIS - Free Report) is set to report fourth-quarter fiscal 2021 results on Nov 10.

The Zacks Consensus Estimate for earnings has moved down 5.6% to 51 cents per share over the past 30 days, indicating an increase of 355% year over year.

The consensus mark for revenues is pegged at $18.77 billion, suggesting growth of 27.6% from the year-ago quarter’s reported figure.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 113.6%.
 

The Walt Disney Company Price and EPS Surprise

The Walt Disney Company Price and EPS Surprise

The Walt Disney Company price-eps-surprise | The Walt Disney Company Quote

 

Let’s see how things have shaped up for this announcement.

Factors to Consider

Disney’s fiscal fourth-quarter results are expected to have benefited from the success of Shang-Chi and the Legend of the Ten Rings, the growing popularity of Disney+ and its strong competitive positioning in the growing online video space thanks to the addition of the Fox studio and TV assets as well as Hulu.

Shang-Chi topped $71.4 million in its Labor Day weekend release, the second-biggest opening haul for films released theatrically during the pandemic. Free Guy, from Disney's 20th Century Studios, has grossed $331.2 million globally, per Box Office Mojo.

The launch of STAR+, Disney’s stand-alone general entertainment and sports streaming service in Latin America, is expected to boost subscriber growth.

Revival in Parks, Experiences and Products businesses holds promise.

Disney reopened two California theme parks on Apr 30, which followed the opening of Disney’s Grand Californian Hotel and Spa (Apr 29). Moreover, the Vacation Club Villa at the Grand Californian resumed operations in the to-be-reported quarter. California’s latest state guidelines permit parks to reopen with 15-35% capacity from Apr 1.

The Zacks Consensus Estimate for Parks, Experiences & Consumer Products revenues is currently pegged at $5.46 billion, indicating growth of 111.6% from the year-ago quarter.

However, limited operating capacity in theme parks, closure of cruise ship and slow yet resumed movie studio operations are expected to have remained challenges in the to-be reported quarter.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Disney has an Earnings ESP of +9.81% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMC Entertainment (AMC - Free Report) has an Earnings ESP of +6.69% and a Zacks Rank #3.

Blink Charging (BLNK - Free Report) has an Earnings ESP of +8.33% and a Zacks Rank #3.

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