Will Disney's Earnings Beat? - Analyst Blog

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The Walt Disney Company ( DIS ) is slated to report its second-quarter fiscal 2013 results on May 7, 2013, after the market closes. In the last quarter, it posted a positive surprise of 2.6%. Let's see how things are shaping up for this announcement.

Growth Factors this Past Quarter


Revenue gains at the Parks and Resorts business and strong performance of the Media Networks division continue to boost the company's financials. Disney remains focused on its core businesses to create long-term growth opportunities. Further, new affiliate deals have helped boost the company's profit.

Earnings Whispers?

Our proven model does not conclusively show that Disney is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method ) and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here as you will see below.

Zacks ESP: ESP for Disney is 0.00%. This is because the Most Accurate Estimate stands at 77 cents, which is in line with the Zacks Consensus Estimate.

Zacks Rank #2 (Buy): Disney's Zacks Rank #2 (Buy) lowers the predictive power of ESP because the Zacks Rank #2 when combined with 0.00% ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Campbell Soup Company ( CPB ), Earnings ESP of +1.79% and a Zacks Rank #2 (Buy)

J&J Snack Foods Corp. ( JJSF ), Earnings ESP of +0.90% and a Zacks Rank #2 (Buy)

Dish Network Corp. ( DISH ), Earnings ESP of +1.89% and a Zacks Rank #3 (Hold).



CAMPBELL SOUP (CPB): Free Stock Analysis Report

DISNEY WALT (DIS): Free Stock Analysis Report

DISH NETWORK CP (DISH): Free Stock Analysis Report

J&J SNACK FOODS (JJSF): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: CPB , DIS , DISH , JJSF

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