Disney (DIS) Q2 Earnings Report Preview: What To Look For

Global entertainment and media company Disney (NYSE:DIS) will be reporting results this Wednesday before market hours. Here’s what investors should know.

Disney beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $23.62 billion, up 7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EPS estimates.

Is Disney a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Disney’s revenue to grow 2.6% year on year to $23.76 billion, slowing from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 19 analysts). Disney has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Disney’s peers in the consumer discretionary segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Scholastic delivered year-on-year revenue growth of 7%, beating analysts’ expectations by 2.8%, and Hasbro reported a revenue decline of 1.5%, topping estimates by 11.2%. Scholastic traded up 23.9% following the results while Hasbro was down 3.3%.

Read our full analysis of Scholastic’s results here and Hasbro’s results here.

There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 2.5% on average over the last month. Disney is down 2.7% during the same time and is heading into earnings with an average analyst price target of $131.56 (compared to the current share price of $119.85).

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