The Walt Disney Company
) is having a fabulous run on the index following the company's
record quarterly performances. The company hit an all-time high of
$84.39 before closing at $84.01 on May 30, 2014. Moreover, Disney's
market cap has grown over 10% year to date, driving up investor
interest in the stock.
Ever since the company posted better-than-expected second-quarter
fiscal 2014 results (on May 5), estimates have been trending
upward. For fiscal 2014, the Zacks Consensus Estimate moved up 2.5%
to $4.16 and for fiscal 2015, it rose 0.6% to $4.63 over the last
Continued double-digit revenue growth across Studio Entertainment,
Consumer Products as well as Interactive businesses led to the
impressive quarterly performance. A special mention for the
incredible success of the animated movie
that has surpassed $1 billion in revenues to become the highest
grossing animated film of all time and has been instrumental in
driving stellar results.
The company's adjusted earnings came in at $1.11 per share,
outpacing the Zacks Consensus Estimate of $0.97 while surging 41%
year over year. Revenues came in at $11,649 million, up 10% year
over year. Moreover, it surpassed the Zacks Consensus Estimate of
Moreover, the company is looking to deliver record quarterly
performance in 2014 based on a number of factors, especially a
strong pipeline of movies and ESPN's mega sport deals. Disney is
likely to incorporate
in its theme parks and introduce products associated with the movie
to continue and cash on its popularity going ahead.
Disney expects the success of
Captain America: The Winter Soldier
to boost third quarter 2014 revenues and anticipates momentum in
the segment to continue in the quarters ahead as its boasts a
strong number of movies in the pipeline including
Tommorowland, Guardians of Galaxy, Avengers: Age of
Star Wars Episode VII
, Disney's most ambitious project in recent times, is slated for
release on Dec 18, 2015.
released on May 30, collected a record $70 million at the box
office in its opening weekend.
Moving to ESPN, the sports channel has bagged the rights for NBA
playoffs and the FIFA tournament, two very important events in the
sports calendar. This is likely to drive advertising revenue to
record highs and in turn the company's earnings.
Currently, Disney carries a Zacks Rank #2 (Buy).
Apart from Disney, other stocks like
Big Lots' Inc.
) achieved new 52-week highs of $43.20, $68.47 and $85.06
respectively, on May 30, 2014.
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