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Market Overview

Preview: Walt Disney's Earnings


On Thursday, November 12, Walt Disney (NYSE: DIS) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Sell-side analysts are expecting Walt Disney's loss per share to be near $0.71 on sales of $14.20 billion. Walt Disney EPS in the same period a year ago totaled $1.07. Revenue was $19.10 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 166.36% decrease in the company's earnings. Revenue would be down 25.65% from the year-ago period. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate -0.64 0.88 1.46 0.95
EPS Actual 0.08 0.60 1.53 1.07
Revenue Estimate 12.39 B 17.81 B 20.78 B 19.19 B
Revenue Actual 11.78 B 18.01 B 20.86 B 19.10 B

Stock Performance

Shares of Walt Disney were trading at $142.05 as of November 10. Over the last 52-week period, shares are down 4.61%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Walt Disney is scheduled to hold the call at 16:30:00 ET and can be accessed here.


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Posted-In: Earnings