Thumbs Up Or Down On Disney Earnings?

The Walt Disney Company (DIS) will discuss fiscal second quarter 2023 financial results via a live audio webcast beginning at 4:30 p.m. ET / 1:30 p.m. PT on Wednesday, May 10, 2023. Results will be released after the close of regular trading. (1)

Wall Street believes the entertainment company will earn $0.93 per share (EPS) compared to $1.08 for the same quarter last year. Despite expecting earnings to decline, analysts believe sales will rise more than 7 percent to $21.88 billion from $20.27 billion. (2)

DIS’ recent earnings have been mixed, topping forecasts twice and falling short twice in the last four quarters. They missed by 11 cents in last year’s second quarter.

Based on Disney’s stock chart below, investors appear to be uncertain about Mickey’s results. DIS shares have essentially traded in the same place since the start of April. But notice that the difference between the top and bottom of the range is expanding. That megaphone look is one of uncertainty.

Earnings and guidance are likely to put the Street’s questions to rest. If Monday’s results and management’s guidance is perceived as bullish by investors and shares close above $102.50, then it could potentially add another $10 in the aftermath of results.

If DIS gets the thumbs down from Wall Street, then then it would not be surprising to see it dip to $90ish. The stock last traded at $100.86, which means Disney could have a little more upside than downside potential following second quarter results.

Trading earnings is risky and only appropriate for the most aggressive investors who can afford to lose money in very short timeframes.

Rich Meyers


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