Walt Disney Co. (NYSE:DIS) is scheduled to report its Fiscal fourth quarter results on November 8 after the market closes. Prior to the Q4 earnings announcement, many analysts hold a positive outlook on DIS and have reaffirmed their Buy ratings on the stock. The entertainment giant’s top line might have benefited from higher prices for Disney+ and other digital streaming services. Furthermore, strong demand for its international theme parks is expected to have aided results.
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Overall, Wall Street expects DIS to post earnings of $0.71 per share in Q4 compared with $0.30 per share reported in the prior-year period. Meanwhile, revenue is expected to rise by 12.2% from the year-ago quarter to $21.37 billion.
Q4 Earnings: Here’s What Analysts Are Saying
In the past week, four Wall Street analysts maintained a Buy rating on Disney stock, while one assigned a Hold.
Among the bullish analysts, Jason Bazinet of Citi is optimistic about Disney’s strategic initiatives, which include efforts to tackle password sharing, potential asset sales, and investments in its parks business. The analyst is keeping a close watch on DIS’s financial outlook for Fiscal 2024 and changes in the company’s reporting structure.
Next, Seaport Research analyst David Joyce reaffirmed a Buy rating and also raised the price target on Micron to $96 from $93. Joyce believes that the increased transparency in Disney’s business models, resulting from the recent segment reporting changes, will help investors to make more accurate assessments of the stock’s value.
What is the Price Target for DIS Stock?
Of the 24 analysts covering DIS stock, 18 have a Buy rating, five suggest a Hold, and one assigned a Sell rating in the past three months. Overall, DIS comes in as a Moderate Buy. Also, the average Disney stock price target stands at $105.62, implying upside potential of 25.7%. Shares are up 5.6% year-to-date.
Insights from Options Trading Activity
TipRanks now presents options activity to help investors plan their trades ahead of earnings releases. Options traders are pricing in a +/- 6.28% move on Disney’s earnings. Interestingly, the stock gained 4.88% in reaction to Fiscal Q3 results, released on August 9.
The anticipated move is determined by computing the at-the-money straddle of the options closest to the expiration after the earnings announcement.
Learn more about TipRanks’ Options tool here.
Ending Note
The company’s endeavors to enhance efficiency through restructuring and improved performance in some of Disney’s segments are praiseworthy. Further, the positive outlook from analysts for Disney’s forthcoming Q4 results is promising.
