The Walt Disney Company (DIS) will release its fiscal 2024 fourth-quarter results on November 14. According to the analysts' consensus estimate, revenues are expected to reach $22.59 billion, a slight increase of 6.37% over the reported amount from the previous quarter.
Disney Offers A Stable Business Structure
Disney is in a great position as the media terrain changes from conventional linear television to streaming. With ESPN+ and two strong U.S. streaming platforms, Disney+ and Hulu, the entertainment behemoth is prepared to handle this shift with ease.
One of Disney's main advantages is its strategy of bundling these video streaming platforms into an alluring package. This strategy is anticipated to decrease customer attrition and increase the median revenue for each account in the quarter that will be reported.
Disney Core Members Forecast
Disney anticipates a modest increase in the number of Disney+ Core members in the fourth fiscal quarter. The company is still hopeful that the mixed streaming businesses' profitability will increase in the fourth fiscal quarter of 2024, as both ESPN+ and Entertainment DTC anticipated turning a profit during that time.
The to-be-reported quarter's Entertainment and Media Distribution earnings are anticipated to have been adversely affected by DIS's likely ongoing decrease in linear TV revenues.
Disney Key Fundamental Outlook
DIS anticipates that the market demand control observed in domestic businesses during the third quarter of the fiscal year may affect the upcoming quarters in the Experiences section.
Because of these fundamental dynamics, Disney anticipates the Experiences segment's operating revenue to drop by mid-single numbers compared to the previous year.
DIS's stock has returned 11.7% so far this year, while the Consumer Discretionary industry as a whole has grown by 10%.
Disney's 12-month P/E of 19.53X is higher than the industry average of 19.11X, indicating a stretched estimation. In comparison to the amount of cash and its equivalents and the present marketable securities for an investment balance of $5.95 billion, the company's loan balance of $47.5 billion is unfavourable.
Disney Stock Forecast Technical Analysis
In the daily chart of Disney stock price, a deeper discount is visible after the March 2024 peak, when a stable bearish trend has come. However, a bullish V-shape recovery from the 83.06 level with a recovery above the 200-day Simple Moving Average.
Looking at the volume, the buying pressure is solid, as the highest activity level since March 2024 is just below the current daily candle.
The main chart shows that the 50-day EMA is below the 200-day SMA, which signals an existing selling pressure. However, the latest daily candle above the 200-day SMA Signals a valid buying pressure.
Based on the current market structure, ongoing buying pressure might extend the DIS stock price above the 118.50 resistance level. However, any downbeat outcome from the earnings report could initiate a bearish pressure after breaching the 50-day EMA support. In that case, the selling pressure might extend below the 83.96 support level.
