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Will Disney (DIS) Live Up to Expectations in Q4 Earnings?
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Media giant, The Walt Disney Company (DIS - Free Report) , is slated to report fourth-quarter fiscal 2017 results after the closing bell on Nov 9. In the previous quarter, the company had registered a positive earnings surprise of 3.3%. Moreover, it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average earnings beat of 1.8%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is whether Disney will be able to post positive earnings surprise in the quarter to be reported. After witnessing a year-over-year decline of 2.5% in the preceding quarter, the Zacks Consensus Estimate for the final quarter of fiscal 2017 is currently pegged at $1.12 per share, reflecting an increase of nearly 2% from the prior-year quarter. We note that the Zacks Consensus Estimate has declined by 5 cents in the past 30 days.
Per analysts polled by Zacks expect revenues of $13,149 million, almost flat year over year. This is because gain in Media Networks and Parks and Resorts will be offset by decline in revenues at Studios segment. Let’s delve deeper and find out more.
Let’s Delve Deep
Media Networks Likely to Gain
After witnessing a decline of 1% in the preceding quarter, the segment is likely to register a year-over-year increase of 0.8% owing to gain in revenues at Cable Networks. The analyst surveyed by Zacks expects revenues of $5,706 million, up from the prior-year figure of $5,658 million. Meanwhile, Cable Networks and Broadcasting are anticipated to report revenues of $4,009 million and $1,704 million up 1.3% and 0.1%, respectively. However, operating income from the segment is expected to decline 4.5% year over year to $1,597 million due to higher programming costs.
Falling subscriber base and higher programming costs at ESPN remain major concerns. Fresh NBA agreement and increase in contractual rate for NFL programming has been driving the overall programming cost higher for ESPN. Disney is striving to bring back ESPN’s golden days. In an effort to attract online viewers, the company has inked a deal with video streaming, data analytics as well as commerce management company BAMTech. Disney which had earlier acquired 33% stake in BAMTech announced its intention to acquire another 42% stake in the firm.
Parks & Resorts Attracting Visitors
Disney’s Parks & Resorts division are also doing well. Disney is focused on deploying its capital toward expansion of the Parks and Resorts business. Consequently, increasing market share and creating long-term growth opportunities. Disney’s Parks and Resorts segment is once again anticipated to deliver growth in final quarter of fiscal 2017. The consensus mark for revenues from the segment is pegged at $4,559 million, up 3.9% year-over-year. Further, operating income is also anticipated to increase by 4.4% to $730 million.
Another Tough Quarter for Studios Segment
The segment, which impressed investors with blockbuster hits in 2016 has somewhat disappointed in 2017 as the year has been a weaker one for movie industry. The segment revenues declined 16% in the third quarter as the movies released failed to match the prior-year hits of Captain America: Civil War, The Jungle Book, and Finding Dory. The trendy is likely to continue in the fourth as the analyst polled by Zacks expects revenues of $1,637 million, down 9.6% year over year. However, operating income is projected to register a gain of nearly 5% year over year to $400 million.
Walt Disney Company (The) Price, Consensus and EPS Surprise
Our proven model does not conclusively show that Disney is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. Disney has an Earnings ESP of +1.37%. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Disney currently carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
DISH Network Corporation has an Earnings ESP of +1.68% and a Zacks Rank #3.
MSG Networks Inc. has an Earnings ESP of +0.31% and a Zacks Rank #3.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Will Disney (DIS) Live Up to Expectations in Q4 Earnings?
Media giant, The Walt Disney Company (DIS - Free Report) , is slated to report fourth-quarter fiscal 2017 results after the closing bell on Nov 9. In the previous quarter, the company had registered a positive earnings surprise of 3.3%. Moreover, it has surpassed the Zacks Consensus Estimate in three of the trailing four quarters with an average earnings beat of 1.8%. Let’s see how things are shaping up prior to this announcement.
What to Expect?
The question lingering in investors’ minds now is whether Disney will be able to post positive earnings surprise in the quarter to be reported. After witnessing a year-over-year decline of 2.5% in the preceding quarter, the Zacks Consensus Estimate for the final quarter of fiscal 2017 is currently pegged at $1.12 per share, reflecting an increase of nearly 2% from the prior-year quarter. We note that the Zacks Consensus Estimate has declined by 5 cents in the past 30 days.
Per analysts polled by Zacks expect revenues of $13,149 million, almost flat year over year. This is because gain in Media Networks and Parks and Resorts will be offset by decline in revenues at Studios segment. Let’s delve deeper and find out more.
Let’s Delve Deep
Media Networks Likely to Gain
After witnessing a decline of 1% in the preceding quarter, the segment is likely to register a year-over-year increase of 0.8% owing to gain in revenues at Cable Networks. The analyst surveyed by Zacks expects revenues of $5,706 million, up from the prior-year figure of $5,658 million. Meanwhile, Cable Networks and Broadcasting are anticipated to report revenues of $4,009 million and $1,704 million up 1.3% and 0.1%, respectively. However, operating income from the segment is expected to decline 4.5% year over year to $1,597 million due to higher programming costs.
Falling subscriber base and higher programming costs at ESPN remain major concerns. Fresh NBA agreement and increase in contractual rate for NFL programming has been driving the overall programming cost higher for ESPN. Disney is striving to bring back ESPN’s golden days. In an effort to attract online viewers, the company has inked a deal with video streaming, data analytics as well as commerce management company BAMTech. Disney which had earlier acquired 33% stake in BAMTech announced its intention to acquire another 42% stake in the firm.
Parks & Resorts Attracting Visitors
Disney’s Parks & Resorts division are also doing well. Disney is focused on deploying its capital toward expansion of the Parks and Resorts business. Consequently, increasing market share and creating long-term growth opportunities. Disney’s Parks and Resorts segment is once again anticipated to deliver growth in final quarter of fiscal 2017. The consensus mark for revenues from the segment is pegged at $4,559 million, up 3.9% year-over-year. Further, operating income is also anticipated to increase by 4.4% to $730 million.
Another Tough Quarter for Studios Segment
The segment, which impressed investors with blockbuster hits in 2016 has somewhat disappointed in 2017 as the year has been a weaker one for movie industry. The segment revenues declined 16% in the third quarter as the movies released failed to match the prior-year hits of Captain America: Civil War, The Jungle Book, and Finding Dory. The trendy is likely to continue in the fourth as the analyst polled by Zacks expects revenues of $1,637 million, down 9.6% year over year. However, operating income is projected to register a gain of nearly 5% year over year to $400 million.
Walt Disney Company (The) Price, Consensus and EPS Surprise
Walt Disney Company (The) Price, Consensus and EPS Surprise | Walt Disney Company (The) Quote
What the Zacks Model Unveils?
Our proven model does not conclusively show that Disney is likely to beat earnings estimates this quarter. This is because a stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. Disney has an Earnings ESP of +1.37%. You may uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Disney currently carries a Zacks Rank #4 (Sell). We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks Poised to Beat Earnings Estimates
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
News Corporation (NWSA - Free Report) has an Earnings ESP of +3.70% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.
DISH Network Corporation has an Earnings ESP of +1.68% and a Zacks Rank #3.
MSG Networks Inc. has an Earnings ESP of +0.31% and a Zacks Rank #3.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>