Disney Stock Earnings Preview: Can DIS Get the Magic Back?

Disney (DIS) had been a great stock for investors for quite some time, but it has definitely lost the magic in recent months. It just posted its first earnings miss in quite some time, while worries over its ESPN division and subscriber losses continue to mount.

DISNEY WALT Price and EPS Surprise

DISNEY WALT Price and EPS Surprise | DISNEY WALT Quote

Still, earnings estimate revision activity has actually been holding up quite nicely in recent months, and shares seem to always rebound when they get into the $80s. The growth from previous years appears to be long gone though, so it is more about stability for DIS investors these days.

DISNEY WALT Price and Consensus

DISNEY WALT Price and Consensus | DISNEY WALT Quote

But with the recent earnings miss fresh in investors’ minds and a likely continued overhang from ESPN, it may be difficult to live up to expectations, and especially if Zika concerns start to hit their Florida operations. And from a sector look, worries seem to make sense given that the media conglomerate industry is ranked in the bottom 15% overall, and that DIS shares were in ‘sell’ territory less than a week ago.

Overall, DIS has a Zacks Rank #3 (hold) and a ‘B’ for its fundamental score heading into the report. So it remains well-positioned for long-term investors, though current problems could still plague shares in the near term.

For a more in-depth analysis of DIS, make sure to watch our short video on the topic. And for additional insights on trading earnings reports, listen to the podcast below:

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