Jump to content

Disney share price forecast and Q1 earnings preview


MongiIG

Recommended Posts

The Walt Disney Co. share price looks to have reversed its downtrend ahead of its Q1 results release

BG_walt_disney_mickey_mouse_987984.jpgSource Bloomberg
 

 Shaun Murison | Senior Market Analyst, Johannesburg | Publication date: Friday 03 February 2023 

When is Disney’s Q1 earnings date?

The Walt Disney Co., listed on the New York Stock Exchange (NYSE), is the largest media and broadcasting company in the world. The company is set to report its fiscal first quarter earnings for 2023 (Q1 2023) on Wednesday the 8th of February after US markets close.

The Walt Disney Co. Q1 2023 earnings: What ‘the street’ expects from results?

The upcoming results will mark the first quarter with Bob Iger back at the helm. Bob Iger had previously served as CEO of the group from 2005 to 2020. His return in the last fiscal quarter follows the immediate dismissal of his successor Bob Chapek and was upon the request of the Disney board.

Box office sales are expected to support revenue growth for the group with the latest Avatar movie having grossed over $2bn. Subscription numbers for Disney+, Hulu and ESPN+ will again be in focus, determining the success of new packaged bundle offerings which amalgamate these services. The groups parks and recreation services had a phenomenal return to growth in 2022 (post lockdowns), and markets will be looking to see whether this momentum has been continued with higher ticket prices to support. Markets will also look to see the health of linear network television for the group, and hear further about restructuring initiatives pertaining.

How to trade the Walt Disney Co. results?

Refinitiv data on the Walt Disney Co. arrives at the following consensus estimates for the Q1 2023 results:

  • Revenue of $23.359 for the quarter (+7% year on year)
  • Earnings per share $0.79 (-25% year on year)
Disneyratings.pngSource Refinitiv

A Refinitiv poll of 30 analysts maintain a long-term average rating of buy for the Walt Disney Co. (as of the 3rd of February 2023, with 7 of these analysts recommending a strong buy, 17 recommending a buy, 6 hold and 0 sell or strong sell recommendations on the stock.

disneysentiment.pngSource IG

From a retail trader perspective (as of 3rd of February 2023), 97% of IG clients with open positions on the Walt Disney Co. expect the price to rise over the near term, while 3% of IG Clients with open positions expect the price to fall.

Disney earnings: technical analysis

 

DIsneychart.pngSource IG

The share price of Disney has recently broken above the 200-day simple moving average (200MA) (blue line). This suggests that the longer-term trend is no longer down. The 20MA (red line) has also recently crossed above the 50MA (green line) suggesting that the short to medium term trend is now up.

The stochastic does however provide a conflicting signal as it trades in overbought territory.

Our preference is to look for long entry on the stock into a pullback from overbought territory, with a longer-term upside resistance target of 126.35. However, should a pullback instead take the share price below resistance and the 200MA at around 101.30, our upward trend bias assumptions would need to be reassessed.

In summary

  • Q1 2023 results are expected to be released on the 8th of February after US markets close
  • While revenue is likely to have increased against the prior year’s comparative period, earnings are expected to have declined
  • Consensus broker rating suggest the Walt Disney Co. to be a long term buy
  • Most IG clients with open positions expect the share price to rise in the near term
  • The price trend for Disney appears up although overbought at current levels
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

    • Staying stuck in gloomy bearish seasons has never been the right approach in the market, so when the market isn’t so favourable I tend to always explore various events to stay profitable. Events don’t get more fun and rewarding at same time than spinning events, so when I saw 100% Spin hot coins events on Bitget with Apple sets and other rewards up for grabs, I just had to quickly jump on it. Participation is pretty simple too, one just has to register, make a net deposit using deposit methods to get spins, trade copy or futures trading for more spins, then spin for the rewards. One exciting thing about the event is its extended duration, lasting from August 28 to September 25, giving participants ample time to spin and get incentivized. A fun and rewarding event if you ask me, only be sure to follow the rules to stay eligible.
    • Today, the U.S. Congress is making history by holding its first-ever hearing on decentralized finance (DeFi). This landmark event could have significant implications for the DeFi sector, including the price of Uniswap (UNI). Key Details of the Hearing Date and Time: The hearing will take place today at 10 a.m. ET. Focus: The session is titled “Decoding DeFi: Breaking Down the Future for Decentralized Finance.” Participants: The Financial Services Subcommittee on Digital Assets, Financial Technology, and Inclusion will lead the discussion. Notable witness Rebecca Rettig, Chief Legal and Policy Officer at Polygon Labs, will be among those present. Impact on Uniswap Price Uniswap's price is currently showing a bullish reversal pattern, despite ongoing scrutiny from the U.S. Securities and Exchange Commission (SEC). With Uniswap's price approaching a crucial 139% breakout zone, the hearing could be a turning point. As of now, UNI is down 0.54% in the last 24 hours, trading at $6.62, according to Coinpedia Markets data. Why This Hearing Matters The hearing represents a significant shift in how DeFi is perceived by U.S. lawmakers. Republican Congressman French Hill has criticized the Biden-Harris Administration for using "rule-making and enforcement actions" that, he believes, stifle DeFi innovation. As the DeFi landscape in the U.S. is under intense scrutiny, Uniswap stands out as a major player, particularly since it attracted more U.S. users than other countries in August 2024, according to Statista data. Looking Ahead If the hearing results in a favorable policy shift, Uniswap's price could see a substantial increase. Market conditions will play a critical role, but if they remain favorable, Uniswap might be on the brink of a 150% breakout rally. As Congress delves into DeFi, the future of Uniswap and the broader DeFi sector could be set for a significant transformation.
    • I recently came across an interesting event on Bitget called "100% Spin Hot Coins! Win your Campus Lucky Draw and Apple Sets." It seems like a promotional campaign where participants can win various digital currencies like PEPE, ****, BGB, KAS, TRX, WIF, and FLOKI, along with Apple products. To join, you need to register and complete the KYC verification process. The event is available to users from specific regions, including the UK, Canada, Australia, and several European countries. The total prize pool is 50,000 USDT, and rewards are given on a first-come, first-served basis. If you're into crypto and enjoy participating in such events, this might be worth checking out. Just make sure to read the terms and conditions carefully before diving in.
×
×
  • Create New...
us