Today’s video takes a closer look at The Walt Disney Company (
DIS - Free Report) ahead of its fourth quarter earnings report. Since 2012, the media giant has been the model of consistency, only missing earnings expectations once in 20 quarters.
The fact that Disney has been consistently able to meet expectations has left investors feeling confident in the company. On top of its historic success, Disney has seen immense growth in both its Film and Parks & Resorts businesses. Major films like
Star Wars: Episode VII brought in $800 million on its own, with other lucrative movies in the Star Wars franchise already planned for the future; Rogue One: A Star Wars Story is hitting theaters this December, while Star Wars: Episode VIII is set for release late next year. This, on top of a 6% revenue rise in Parks & Resorts over the past year fuels investors optimism of success.
However, there still remains some underlying questions for Disney. As reported by Zacks, a big decline in ESPN subscribers is causing some concern for the company.
CNN Money reportedback in May that “The sports giant has been losing subscribers over the past few years. The problems at ESPN are hurting Disney's lucrative cable network business. Operating profits fell 5% at the unit in Disney's most recent quarter.” This concern has led to less viewership and subscribers to one of Disney’s biggest network divisions.
Currently, DIS stock is a #3 (Hold) on the Zacks Rank, with a VGM score of ‘C.’ The historic success of meeting earnings is keeping investors optimistic, but the pending threat of possible revenue losses in major divisions of the company is a cause of concern.
Disney reports November 10th after the bell, and we are looking for earnings of $1.13 per share. Make sure to watch the video for a quick guide to Disney heading into its report, but if you want to learn more about trading in the earnings season, then singup for David's Live Trader service below:
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