Walt Disney (DIS) is set to release its fiscal Q4 results tomorrow, November 13. Based on current options pricing, the stock could swing about 6.6% in either direction after the results are released. That is much larger than the entertainment giant’s three-year average post-earnings move of -0.16%, which reflects a modest decline.
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The implied move suggests investors are uncertain about how the company’s streaming, parks, and media businesses will have performed in the quarter. Also, they are looking for insights into Disney’s turnaround efforts under CEO Bob Iger, who returned with a focus on improving profitability and content quality.
What to Watch in DIS’ Q4 Report
Wall Street is expecting DIS to report Q4 earnings of $1.05 per share, compared with $1.14 in the same period last year. Also, analysts project revenues of $22.76 billion, up from $22.45 billion in the year-ago quarter.
In the upcoming results, investors are looking for Disney’s progress in cutting losses from its streaming segment, which has been a drag on earnings. Also, the company’s theme parks have been a bright spot in recent quarters. Strong attendance and consumer spending could help balance out weaker segments.
At the same time, cost-cutting and restructuring efforts are also under scrutiny, as news about savings or layoffs could affect market sentiment. Lastly, Disney’s content strategy is under the spotlight amid fewer big hits and tougher competition.
Is Walt Disney a Buy or Sell?
Turning to Wall Street, DIS stock has a Strong Buy consensus rating based on 14 Buys and one Hold assigned in the last three months. At $141.38, the average Walt Disney stock price target implies a 21.17% upside potential.
