Market Overview

Mark Tepper: Disney's Q4 Report Is A 'Non-Event'

Mark Tepper: Disney's Q4 Report Is A 'Non-Event'

Walt Disney Co's (NYSE: DIS) fourth-quarter earnings report Thursday afternoon is a "non-event," but for the sake of the stock's valuation, the following earnings report needs to impress, according to Strategic Wealth Partners CEO Mark Tepper.

What Happened

Disney's earnings report won't matter much for investors, as its new streaming video service has yet to be released, Tepper said on a recent CNBC "Trading Nation" segment.

In contrast, the first-quarter earnings report will be a "show-me quarter" and could determine the stock's movement, he said. 

Disney's stock is up close to 20% year-to-date, which contributed to an expansion of the forward multiple from around 16 to 24, Tepper said. As such, initial signs of success for the streaming business are "really necessary" to support multiples at current levels, the CEO said. 

Don't Need A 'Home Run'

Disney's first-quarter report needs to confirm its streaming platform is "getting some traction," Tepper said. However, Disney doesn't need to "hit a home run" in the quarter, since management's own guidance of 60 to 90 million subscribers represents a five-year outlook, he said. 

Disney's stock chart is showing some bullish signs, including strong technical support levels on the 200-day moving average, Blue Line Capital president and founder Bill Baruch also said on the "Trading Nation" segment.

"I'm willing to buy into that long term. I think there's going to be a lot of construction here, and I think it's going to perform," Baruch said. "You're going to see this stock perform longer term, looking out 10 years at least."

Disney shares were up 1.58% at $133.36 at the time of publication. 

Related Links:

Option Traders Make Big Bets On Disney Ahead Of Earnings, Streaming Launch

Verizon Inks Deal For Disney+, Netflix Investors Show Concern

Photo courtesy of Disney. 


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