Global entertainment and media company Disney (NYSE: DIS) will be announcing earnings results this Wednesday morning. Here’s what investors should know.
Disney beat analysts’ revenue expectations last quarter, reporting revenues of $25.98 billion, up 5.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.
Is Disney a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Disney’s revenue to grow 5.2% year on year, slowing from the 7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Disney has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Disney’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Rush Street Interactive delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 11.3%, and Monarch reported revenues up 8.9%, topping estimates by 5.2%. Rush Street Interactive traded up 16.6% following the results while Monarch was also up 15.9%.
Read our full analysis of Rush Street Interactive’s results here and Monarch’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 4.4% on average over the last month. Disney is up 5.6% during the same time and is heading into earnings with an average analyst price target of $128.25 (compared to the current share price of $101.70).
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