Disney Earnings on Deck: ‘John Carter’ Is Going to Hurt

Disney (NYSE:DIS) reports second-quarter earnings today after markets close, with a conference call scheduled for 5:00 p.m. EDT. Analysts are expecting the company to post earnings of 55 cents a share on revenue of $9.56 billion. The consensus range is for EPS of 51 cents to 60 cents on revenue of $9.09 billion to $9.74 billion, according to First Call.

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Positive advertising trends at both its ABC and ESPN networks are expected to have boosted earnings, though Disney is expected to book a $200 million loss on the movie John Carter, which bombed at the box office.

Still, the company’s CapEx for fiscal 2012 will likely be higher than in 2011 due to Marvel Entertainment’s The Avengers, which last weekend broke box office records for the highest opening debut in history. With a 3-day cume of $641.8 million worldwide, Disney more than made back its $220 investment in the film, which could be the tenth in history to top $1 trillion in its box office run.

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Still, Rich Ross, head of Disney’s film studio, resigned unexpectedly last month, and no successor has yet been named. The company’s Interactive Media Group’s games publishing team laid off 10 full- and part-time employees.

But Goldman expects Disney will report “solid” second-quarter earnings driven by advertising and theme parks. Goldman’s EPS estimate is 58 cents, above the consensus, and the firm views Disney’s valuation as attractive.

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