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
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.
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 ReportDISNEY WALT (DIS): Free Stock Analysis ReportDISH NETWORK CP (DISH): Free Stock Analysis
ReportJ&J SNACK FOODS (JJSF): Free Stock Analysis
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