Jump to content

Disney earnings preview: what to expect from Q4


Recommended Posts

Disney reports earnings after the closing bell on Tuesday.

 Jeremy Naylor | Writer, London | Publication date: Friday 04 November 2022 

IGTV’s Jeremy Naylor looks at the risks for shares considering the theme park’s business, studios, and streaming.

Can the company pull a rabbit out of the hat or is the risk to the downside for shares?

Risk event: Disney earnings

Welcome, let's take a look at a Risk Event now for the week starting Monday 7th November.

I want to focus in on earnings from Disney after the closing bell on Tuesday. It’s an all-sessions stock so you can trade this on the IG platform.

Let's take a look at the numbers as, despite the fact we've got lots of moving parts here, the broad sweep of analysts are saying that we're going to get earnings per share at $0.59 on revenues just shy of $21.4 billion.

Now, theme parks, have been hit by zero-COVID recently, but we're hearing from China that the zero-COVID policy may now be over and we're moving to a more tolerant environment, which could help theme parks.

The studios, the Marvel acquisition, continues to provide a lot of opportunities. But the big question is about inflation and how Disney Studios are going to control inflation, control base costs, because that is going to be a big issue outlook from here in terms of wages, in terms of cost for sets and so forth.

And then of course, the third aspect is, I think the most important one, is the streaming, hit by Netflix's attempts to steal the low line subscription.

Disney share price chart

Let's take a look at the share price chart because I think this says a lot. From the Covid lows we had here down at $79 back in March 2020, we saw a 160% rise, almost, in that.

During that period, we saw Disney bring streaming to the masses. And of course, a lot of people used streaming as a way to entertain themselves while they were being locked down. But since the highs we saw at $205 back in March, we've seen a lot of downside as people gave up some of the streaming.

It became obvious that it was more difficult, perhaps maybe, to keep subscribers going and, indeed, get more subscribers. And, of course, there are a lot of streaming companies now, which are vying for this.

And, most recently, we've seen Netflix in its attempts to steal the low line subscriptions with a new cut price, discounted, advertisement-driven policy, and that undercuts Disney. And this is going to be a problem for Disney.

Disney shares trade all-sessions on the IG platform. You can trade this when the numbers come out after the closing bell on Tuesday.

On Friday’s all-session stock, we're currently trading just shy of the $100 level. If you are short on this, which I think is my base case, that I think that Disney’s going to produce something which could well be a bit of a disappointment. I think you put your stop above this area up here to round about the $109 level with a view to taking this lower down and possibly passing the $90.20 level if we do get a dire outlook from the company.

But this is fiscal fourth quarter numbers out after closing bell on Tuesday. Could be an interesting point to watch out for as we look towards the new trading week and a Risk Event to consider.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • If you had left a limit order based on the previous margin requirement, it's likely the system would've adjusted it to match the new rate once it changed. This helps prevent any unexpected margin calls. However, it's always wise to double-check your orders, especially when there are fluctuations in margin requirements. 
    • Just look at CZ's impact on Binance or Gracy Chen's leadership at Bitget. It's incredible how a visionary leader can propel an organization forward. Gracy Chen's track record speaks for itself – fourfold growth in two years is no small feat! With her at the helm, Bitget could indeed be on track to reach new heights.
    • Hey, have you all heard about this zkLink Nova project? It's supposed to be some next-level technology for Ethereum and Layer 2 networks, and I've been looking into it. I'm telling you, this could be massive! Alright, let me break it down for you. zkLink Nova is like an "Aggregated Layer 3 zkEVM Rollup network" built on top of zkSync's ZK Stack. I know, it sounds super technical, but hear me out. Basically, it's a way to integrate all the liquidity and assets from Ethereum and different Layer 2 rollups into one unified platform. Now, why is that a big deal, you ask? Well, right now, all these networks are like separate islands, you know what I mean? Their assets and liquidity are fragmented, and we have to use questionable bridges to move stuff around. It's a complete mess, and it opens up security risks like crazy. But with zkLink Nova, they're using some fancy zero-knowledge proof magic to let us access the combined liquidity without needing to bridge assets! Can you imagine that? It's like having one massive, happy DeFi playground with all the toys under one roof. No more hopping around networks or dealing with shady bridge protocols. Just pure, unified liquidity and assets at our fingertips. The possibilities for dApp developers with that kind of power are insane! And get this – the zkLink team has already lined up over 60 partners to help steer this Layer 3 ecosystem! We're talking big names like Coinbase Ventures and Arrington Capital, who have already invested a whopping $23M into the zkLink ecosystem's development. I'm telling you, this Nova thing could be a game-changer for the Ethereum and Layer 2 space. It's like they're solving one of the biggest headaches we've had in DeFi with all these incompatible networks. Oh, and here's the kicker – the $ZKL token, which is the native token for the zkLink ecosystem, is now available for premarket trade on Bitget! This could be our chance to get in early on what might become the backbone of a whole new era of DeFi interoperability. But I want to know what you all think. Are you buying into the zkLink Nova hype? Or do you think it's just another overhyped project promising the moon? Let me know your thoughts in the comments!
  • Create New...