The Walt Disney Company: Wunderlich Previews Earnings, Takes A Look At The Business And Its Assets

The Walt Disney Company DISis scheduled to report its first quarter 2015 results on Tuesday, after the market closes. In a report published that same morning, Wunderlich Securities analyst Matthew Harrigan provides a preview to the earnings and briefly looks into the business.

Below, the key points:

-Earnings estimates were cut down for fiscal 2014, from $4.78 per share, to $4.64 per share. For fiscal 2015, the estimate stands at $5.30 per share.

- The firm maintains a Hold rating and an $88 price target on the stock, which currently trades close to $92.

- Disney holds the “top global portfolio of creative assets” and, according to the report, its studio is undervalued. Even without taking into account the contributions from new franchises such as “Frozen” to Consumer Products and Parks, Wunderlinch values Disney’s studio at $19.9 billion.

- ESPN's dominance in the sports arena, “and the distinctive appeal of its WatchESPN app, is evinced by 2014 overall Disney distribution deals with DirecTV DTV,” amongst others.

- In spite of the global appeal that Marvel, Pixar, Disney Animation, Lucasfilm/Star Wars, and ESPN have, the company is “quite exposed to the global macro, including the strong dollar and its implications for the Park business. The WSJ is also now reporting that the opening of Shanghai Disneyland is delayed until first half 2016 off expanded attractions and consumer survey reactions).”

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Posted In: Analyst ColorNewsPrice TargetPreviewsReiterationAnalyst RatingsTrading IdeasDisney AnimationESPNLucasfilmMarvelMatthew HarriganPixarStar WarsWatchESPNWunderlich
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