Disney Earnings Sneak Peek

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

Walt Disney Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 68 cents per share, a rise of 15.3% 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 71 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 69 cents during the last month. Analysts are projecting profit to rise by 21.3% compared to last year’s $3.08.

Past Earnings Performance: Last quarter, the company beat estimates by 8 cents, coming in at profit of $1.01 a share versus the estimate of net income of 93 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit rose 24.1% to $1.83 billion ($1.01 a share) from $1.48 billion (77 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.9% to $11.09 billion from $10.68 billion.

Stock Price Performance: Between October 5, 2012 and November 2, 2012, the stock price dropped $3.11 (-5.9%), from $52.97 to $49.86. The stock price saw one of its best stretches over the last year between October 11, 2012 and October 18, 2012, when shares rose for six straight days, increasing 4.1% (+$2.08) over that span. It saw one of its worst periods between October 18, 2012 and October 26, 2012 when shares fell for seven straight days, dropping 4.5% (-$2.34) over that span.

Wall St. Revenue Expectations: On average, analysts predict $10.91 billion in revenue this quarter, a rise of 4.7% from the year-ago quarter. Analysts are forecasting total revenue of $42.45 billion for the year, a rise of 3.8% from last year’s revenue of $40.89 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 12.4% in the first quarter and 21.3% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7% in the fourth quarter of the last fiscal year, 0.6% in the first quarter and 6.1% in the second quarter before increasing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.33 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Analyst Ratings: There are 15 out of 25 analysts surveyed (60%) rating Walt Disney a buy.

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

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