We expect entertainment giant
The Walt Disney Company
) to beat expectations when it reports second quarter fiscal 2014
results scheduled for release on May 6, 2014.
Why a Likely Positive Surprise?
Our proven model shows that Disney may beat earnings because it
has the right combination of 2 key components.
Positive Zacks ESP:
Disney currently has an
of +1.03%. This is because the Most Accurate estimate stands at
98 cents per share, while the Zacks Consensus Estimate is pegged
at 97 cents.
Zacks #2 Rank (Buy):
Note that stocks with a Zacks Rank #1, 2 and 3 have a higher
chance of beating earnings. The Sell-rated stocks (#4 and 5)
should never be considered going into an earnings announcement.
The combination of Disney's Zacks Rank #2 (Buy) and Earnings ESP
of +1.03% makes us confident of a positive earnings beat on May
What is Driving Better-than-Expected Earnings?
Disney is one of the world's major diversified entertainment
companies. Moreover, the company commands a formidable portfolio
of globally recognized brands, which provide a strong competitive
advantage and strengthens its well-established position in the
Moreover, Disney's several content distribution agreements with
) enhances its multi-channel subscription model by increasing the
number of platforms to deliver content.
We believe the company remains well positioned to sustain its
robust performance in the long-term on the back of Parks and
Resorts, as well as its Studio and Media Networks divisions.
Disney has topped the Zacks Consensus Estimate for the past
several years, with a trailing four-quarter average surprise of
6.0%. In the last concluded quarter, the company outdid Zacks'
expectations by 14.3%.
Other Stocks to Consider
Disney is not the only firm we are expecting big things from this
earnings season. The following companies are also likely to beat
earnings in the to-be-reported quarter:
CST Brands Inc.
) with an Earnings ESP of +14.29% holds a Zacks Rank #3 (Hold).
Vitamin Shoppe Inc.
) has an Earnings ESP of +1.47% and a Zacks Rank #3 (Hold).
Foot Locker, Inc.
has an Earnings ESP of +1.91% and a Zacks Rank #3 (Hold).
COMCAST CORP A (CMCSA): Free Stock Analysis
CST BRANDS INC (CST): Free Stock Analysis
DISNEY WALT (DIS): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis
NETFLIX INC (NFLX): Free Stock Analysis
VITAMIN SHOPPE (VSI): Free Stock Analysis
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