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Disney’s Q2 2014 Earnings Report Preview

May 06, 2014 | About:
Karen Rogers

Karen Rogers

1 followers

Walt Disney Co. (DIS) is scheduled to release its second quarter 2014 earnings report at approximately 4:15 p.m., EDT, on Tuesday, May 6, 2014. The company will discuss the report via a live webcast available at Disney Investor Relations beginning at 5:00 p.m., EDT.

Analysts expect:

  • EPS ranging from $0.91 to $1.00 with a target of $0.95.
  • Revenue ranging from $10.90 billion to $11.46 billion with a target of $11.23 billion.

Annual and Quarterly Growth

For the past three consecutive quarters, Disney’s EPS has exceeded analysts’ estimates by one cent or more.

 

Q2 2014

Q1 2014

Q4 2013

Q3 2013

Estimate

$0.95

$0.92

$0.76

$1.01

Actual

 

$1.04

$0.77

$1.03

Difference

 

$0.12

$0.01

$0.02

Disney’s annual earnings show steady year-over-year growth. For fiscal year 2013, the annual reported sales of $45 billion represented a 6% increase over fiscal year’s $42 billion sales figure. Analysts expect sales to come in at $47.7 billion for fiscal year 2014.

Profit Diversification

While Disney is best known for its theme parks and resorts, the company has a large diversified profit base. Disney produces and markets movies through DreamsWorks (DWA), Touchstone Pictures, LucasFilm and Pixar Animation. In addition to The Disney Channel, the company owns The ABC Television Group and ABC Studios, and owns 50% of the A&E, Biography, History and Lifetime channels along with numerous radio stations. Branching out into different entertainment sectors protects Disney’s profit margin should one sector start showing weakness.

Going Long on Disney

Analysts rate Disney as a strong buy because of the company’s annual consecutive growth, strong quarterly earnings and experienced management team. The stock currently trades around $81.00 a share with support and resistance levels pegged at $78.00 and $81.00, respectively. If Disney’s EPS exceeds the estimates and revenue beats the $11.23 billion target, it could serve as a buy signal for investors looking to go long on Disney.


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