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Walt Disney (DIS) to Report Q2 Earnings: What's in the Cards?

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The Walt Disney Company (DIS - Free Report) is set to report its second-quarter fiscal 2023 results on May 10.

The Zacks Consensus Estimate for earnings has moved down by a penny to 88 cents per share over the past 30 days, indicating a year-over-year decrease of 18.5%.

The consensus mark for revenues is pegged at $21.73 billion, suggesting growth of 12.9% from the year-ago quarter’s reported figure.

Notably, Disney’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two quarters, the average surprise being 2.36%.

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 second-quarter fiscal 2023 results are expected to reflect stalling Disney+ subscriber growth. Disney+, as of Dec 31, 2022, had 161.8 million paid subscribers compared with 164.2 million as of Oct 1, 2022.

Stiff competition from the likes of Amazon prime video and Netflix, as well as the growing prominence of services from Apple, Peacock and HBO Max, is expected to have hurt Disney+’s growth in the to-be-reported quarter.

The Zacks Consensus Estimate for the number of paid subscribers of Disney+ is pegged at 166 million, suggesting 2.5% sequential growth.

Parks, Experiences and Products businesses are expected to have benefited from strong occupancy.

The Zacks Consensus Estimate for Parks, Experiences & Consumer Products' revenues is pegged at $7.55 billion, indicating growth of 13.5% from the figure reported in the year-ago 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. But that’s not the case here.

Disney has an Earnings ESP of -5.75% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

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

PlayAGS (AGS - Free Report) has an Earnings ESP of +36.17% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

PlayAGS shares have gained 4.3% year to date. AGS is set to report its first-quarter 2023 results on May 9.

Fox (FOXA - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank #3.

Fox shares have gained 5.3% year to date. The company is set to report its third-quarter fiscal 2023 results on May 9.

Keysight Technologies (KEYS - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #2.

Keysight shares have declined 16% year to date. KEYS is set to report its second-quarter fiscal 2023 results on May 16.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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