Preview of Walt Disney’s (NYSE: DIS) Second Quarter Results

Frozen, Disney, Earnings, ReportWalt Disney’s (NYSE: DIS) financial results of the second quarter will be reported soon as the company is taking consistent efforts to make maximum use of its recent acquisitions of Star Wars and Marvel. There is a positive sentiment among analysts about the growth opportunities of the animation company for the year 2015 given that its production “Frozen” managed to make $1 billion worth sales recently. It is expected that the company may also soon reveal its plans with respect to Star Wars, which has been bit of a mystery until now. The investors seem to be eying the escalated buyback of shares.

Company growth analysis

The prediction is that the quarter revenue report of Disney will reveal an increase of more than 6 percent year on year reaching $11.23 billion. There is also a consensus among analysts about $0.79 earnings per share forecast. The earnings per share prediction has remained consistent in the last 60 days. However, the company’s performance in the last quarter exceeded the EPS expectations of analysts by 13 percent. So there has been an underestimation of the earnings per share of the company in the previous four quarters.

The first quarter results of Disney were attributed with a two-digit increase in its operating revenue in all the business areas. The company CEO said that the results were a reflection of the unparalleled brand portfolio of Disney and consistent attention to innovation as well as creativity. This is the company’s strategy for long term continued growth. There was a rise of more than 8 percent in the company’s share price in the week that followed the first quarter’s report.

The estimate of the earnings per share of the company has also remained consistent in the past 60 days. The revenue for the entire financial year so far is predicted to be less than 7 percent, which is more than what was projected in the last financial year.

Company overview

The Walt Disney Company carries out operations in five different areas and is a global name in media entertainment. The segments of operations include Media Networks, Studio Entertainment, Parks and Resorts, Consumer Products and Interactive. It is currently the highest earning media company in the world. Founded in 1923, Walt Disney has its headquarters in Burbank, California and its market capitalization is presently greater than 140 billion dollars.

Leave a Comment