Disney Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component The Walt Disney Company (NYSE:DIS) will unveil its latest earnings on Tuesday, May 8, 2012. Walt Disney is an entertainment company with operations in: media networks, parks and resorts, studio entertainment, and consumer products.

The Walt Disney Company Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 56 cents per share, a rise of 14.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 62 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 57 cents during the last month. Analysts are projecting profit to rise by 16.1% compared to last year’s $2.95.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 80 cents per share versus a mean estimate of profit of 71 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 5.3% in revenue from the year-earlier quarter to $9.56 billion.

Analyst Ratings: Of the 26 analysts surveyed, 16 (61.5%) rate Walt Disney Company a buy. This is below the mean analyst rating of nine competitors, which average 62.6% buy ratings. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

A Look Back: In the first quarter, profit rose 12.4% to $1.46 billion (80 cents a share) from $1.3 billion (68 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 0.6% to $10.78 billion from $10.72 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 10.9% in the third quarter of the last fiscal year and 30.2% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 5.8% in the second quarter of the last fiscal year, 6.7% in the third quarter of the last fiscal year and 7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Stock Price Performance: Between February 6, 2012 and May 2, 2012, the stock price rose $3.08 (7.6%), from $40.46 to $43.54. The stock price saw one of its best stretches over the last year between February 2, 2012 and February 9, 2012, when shares rose for six straight days, increasing 6.7% (+$2.62) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 9.3% (-$3.71) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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