Over the past two quarters, Disney has consistently exceeded earnings projections. The company's average earnings have exceeded projections by 10.21%.
Disney (DIS) Earnings Projection
Disney announced earnings of $1.14 per share for the most current quarter, which was a 4.59% surprise compared to the $1.09 per share that was anticipated. In the preceding quarter, it earned $1.39 each share, a 15.83% surprise, compared to the average forecast of $1.20 per share.
Disney is in a great position as the media environment changes from conventional linear TV 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.
According to the company's projections, the first quarter of fiscal 2025 will see content sales/licensing along with additional operational revenue that is roughly comparable to the final quarter of fiscal 2024. Linear networks, direct-to-consumer, content sales/licensing, and other income are all included in our model's estimated $10.19 billion in entertainment income, which represents a 2.2% annual growth.
Disney Strength Factors
By combining these video streaming services into an alluring package, Disney's bundling approach is one of its main benefits. Disney significantly enhanced its streaming service during the reviewed quarter by launching the ESPN title on Disney+. This strategy is anticipated to have decreased customer attrition in addition to increasing average earnings per client in the quarter that will be reported.
DIS's unmatched Intellectual Property (IP) portfolio is its real strength. The corporation possesses the most potent collection of intellectual properties in the media sector, ranging from the well-known Star Wars and Marvel franchises to the cherished Disney princesses, Mickey Mouse, and Pixar's timeless masterpieces.
Disney anticipates 6-8% sector operating income development in the Experiences category, with a focus on the 2nd half of 2024. Investors should closely monitor important indicators during the reviewed quarter, including park attendance, per-capita expenditure, and any statements about plans for growth.
DIS Stock Forecast Technical Analysis
In the daily chart of DIS stock price, the significant selling pressure from the April 2024 high is still potent as the recovery from the 84.07 level failed to show sufficient counter impulsive pressure. In this context, the main aim is to find a bearish pressure and join the upside momentum from a cheaper price.
The volume shows a different story, where the high volume price since April 2024 is at 102.00 level which is below the current price.
The dynamic 50-day EMA is an immediate support from where a bullish V-shape recovery is present. In that case, an upbeat earnings report with the recovery of the 116.00 level could result in a new swing high formation above the 124.00 level. However, there is sufficient liquidity from the trendline support from where a secondary bullish signal might appear.
In that case, a failure to hold the buying pressure above the dynamic 50-day EMA could initiate a downside momentum toward the 200-day SMA line. However, dipping below the 100.00 psychological line could extend the loss towards the 86.00 area.
