DIS: Join Walt Disney For Another Great Year

By Louis Navellier, Editor, Blue Chip Growth

Walt Disney (DIS) announced healthy fourth-quarter earnings and record performance for 2014.

Is there still time to buy DIS, or has this ship sailed?

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Walt Disney – Company Profile

In 1923, the Disney brothers founded a cartoon studio that ultimately gave birth to beloved animated characters Mickey Mouse and Minnie Mouse. Over the decades, the Walt Disney brand has grown into one of the world’s largest mass media companies, with 14 theme parks around the world, one of Hollywood’s most established studios as well as dozens of cable television networks.

In total, Walt Disney has 175,000 employees worldwide and brought in over $45 billion in revenue in the last fiscal year.

Walt Disney – Earnings Rundown

In the fourth quarter Disney slightly beat analyst estimates of 88 cents per share, reporting 89 cents per share, a 16% increase from the previous year. Disney also posted quarterly net income of $1.5 billion. Revenue for the quarter increased to $12.39 billion, up 7% from $11.57 billion last year.

For fiscal 2014, Disney’s revenue increased by 8% year-on-year to $48.8 billion and net income increased by 22% to $7.5 billion. Earnings-per-share for the year increased by 27% to $4.32, compared to $3.39 last year. 2014 was Disney’s most profitable year yet, and 2015 is expected to be another strong year for Disney.

Walt Disney – Current Ratings

Disney’s buying pressure over the past few months has been impressive. So, DIS earns an “A” for its Quantitative Grade. Disney’s fundamental metrics are also solid. Disney earns “Bs” across the board in earnings growth, earnings momentum, operating margin growth, earnings surprises, analyst earnings revisions, cash flow and return on equity. The lone exception is sales growth, which earns Disney a “C.”

So, DIS receives a “B” for its Fundamental Grade. As of this posting, Nov. 10, I consider DIS an “A-rated strong buy.”

Louis Navellier is a renowned growth investor. He is the editor of five investing newsletters: Blue Chip Growth, Emerging Growth, Ultimate Growth, Family Trust and Platinum Growth. His most popular service, Blue Chip Growth, has a track record of beating the market 3:1 over the last 14 years. He uses a combination of quantitative and fundamental analysis to identify market-beating stocks. Mr. Navellier has made his proven formula accessible to investors via his free, online stock rating tool, PortfolioGrader.com. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.


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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 Nasdaq, Inc.

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

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