Walt Disney stock: Earnings preview sets November 17 test

The Walt Disney Company is heading into its fiscal fourth-quarter report with investors focused on growth across entertainment and Experiences, as well as pressure in sports. In an analysis published Friday, November 13, Zacks said Disney is scheduled to report before the US market opens on November 17.

Estimates set the earnings bar

Zacks puts the consensus revenue estimate for the quarter at 25.26 billion US dollars and the earnings estimate at 1.67 US dollars per share. The earnings estimate has moved lower by one cent over the past 30 days, although it still implies strong year-over-year growth.

Disney expects total segment operating income of approximately 4.9 billion US dollars for the quarter. That outlook includes the benefit of a 53rd week, which gives the reported period an unusual calendar boost and will be an important factor when investors assess the underlying operating trend.

Streaming supports the setup

Zacks highlighted Disney's direct-to-consumer business after its first double-digit Entertainment SVOD operating margin. The company has also pointed to continued confidence in sustaining at least a 10 percent margin for the full year. Recent film and streaming releases could support engagement and content-related revenue.

Sports and parks remain mixed

Sports is a counterweight to the stronger streaming picture. Disney had indicated that Sports segment operating income could decline by roughly 14 percent year over year in the fiscal third quarter because of higher programming costs and the timing of new rights agreements.

Experiences offers a more constructive angle, with the Disney Adventure cruise ship and World of Frozen expansion at Disneyland Paris contributing to guest spending. Zacks also noted that Disney continues to monitor macroeconomic uncertainty, which could affect discretionary consumer behavior.

Walt Disney stock traded at 107.87 euros on Lang & Schwarz at 17:07 CET on Friday, November 13.

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