Walt Disney (DIS) to Report Q1 Earnings: What's in the Cards?
The Walt Disney Company DIS is set to report its first-quarter fiscal 2023 results on Feb 8.
The Zacks Consensus Estimate for earnings has moved down 11.5% to 69 cents per share over the past 30 days, indicating a decrease of 34.9% year over year.
The consensus mark for revenues is pegged at $23.33 billion, suggesting growth of 6.93% from the year-ago quarter’s reported figure.
Notably, Disney’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed in the remaining two quarters, the average surprise being 12.98%.
The Walt Disney Company Price and EPS Surprise
The Walt Disney Company price-eps-surprise | The Walt Disney Company Quote
Let’s see how things have shaped up for this announcement.
Factors to Consider
Disney’s first-quarter fiscal 2023 results are expected to reflect stalling Disney+ subscriber growth. Disney+, as of Oct 1, 2022, had 164.2 million paid subscribers compared with 118.1 million as of Oct 2, 2021.
The rapidly growing subscriber base, thanks to a solid content portfolio, has strengthened Disney’s position in the increasingly saturated streaming space.
Stiff competition from the likes of Amazon prime video and Netflix as well as the growing prominence of services from Apple, Peacock and HBO Max is expected to have hurt Disney+ growth in the to-be-reported quarter.
The Zacks Consensus Estimate for the number of paid subscribers of Disney+ is currently pegged at 157 million, suggesting a 4.3% sequential decline.
Moreover, Parks, Experiences and Products businesses are expected to have suffered from COVID-related disruptions in China.
However, the Parks, Experiences & Consumer Product segment is expected to have benefited from strong holiday-season-driven admission in other theme parks.
The Zacks Consensus Estimate for Parks, Experiences & Consumer Products revenues is currently pegged at $7.99 billion, indicating growth of 10.5% from the figure reported in the year-ago quarter.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Disney has an Earnings ESP of -3.37% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Cambium Networks CMBM has an Earnings ESP of +9.27% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cambium shares have declined 11.4% in the past year. CMBM is set to report its fourth-quarter 2022 results on Feb 16.
Bruker BRKR has an Earnings ESP of +3.88% and a Zacks Rank of 2, at present.
Bruker shares have gained 7.5% in the past year. BRKR is set to report its fourth-quarter 2022 results on Feb 9.
Lyft LYFT has an Earnings ESP of +42.37% and a Zacks Rank #2.
LYFT shares have declined 55.6% in the past year. Lyft is set to report its fourth-quarter 2022 results on Feb 9.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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The Walt Disney Company (DIS) : Free Stock Analysis Report
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Cambium Networks Corporation (CMBM) : Free Stock Analysis Report
