The Walt Disney Company
) have gained momentum since the company released its
first-quarter fiscal 2014 results on Feb 5, 2014. Since the
release, the stock price has moved up 10.4%.
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Results were propelled by double-digit revenue growth across
Studio Entertainment, Consumer Products as well as Interactive
businesses. Revenues came in at $12,309 million, up 9% year over
year. Moreover, it surpassed the Zacks Consensus Estimate of
The company's adjusted earnings came in at $1.04 per share,
beating the Zacks Consensus Estimate of 91 cents and surging 32%
year over year. Investors remained optimistic about the stock's
performance as on an average Disney has delivered a positive
earnings surprise of 6.3% in the past 20 quarters. Its long-term
EPS growth rate is 11.1%, almost in line with the peer group.
Moreover, the company hit a 52-week high of $79.47 on Feb 14,
2014, eventually closing at $79.23. This stock, amassing a return
of nearly 46.2% over the past one year, currently holds a Zacks
Rank #2 (Buy). However, it is likely to be revised upwards as in
the past 30 days it witnessed an earnings estimate revision of
1.5% to $3.99 per share and 1.3% to $4.57 per share for fiscal
2014 and 2015 respectively.
Walt Disney is one of the world's major diversified entertainment
companies. Moreover, the company commands a formidable portfolio
of globally recognized brands, which endows it with a strong
competitive advantage and strengthens its well-established
position in the market.
Disney also entered into several content distribution agreements
with companies such as Comcast and
), which enhance its multi-channel subscription model by
increasing the number of platforms to deliver content.
We believe that barring the near-term headwinds, the company
remains well positioned to sustain its robust performance on the
back of Parks and Resorts, as well as the Studio and Media
Currently, this worldwide media entertainment company trades at a
forward P/E of 19.8x, a 5.7% premium to the peer group average of
18.74x. The last traded price is nearly 1.3% below the Zacks
Consensus average analyst price target of $80.29. Average volume
of shares traded over the last 3 months stands at approximately
Other than Disney,
McGraw Hill Financial, Inc.
) also reached highs of $65.93 and $82.05 respectively, on Feb