'Avengers: Endgame' helps Disney (DIS, $133.76) post an estimate beating second quarter results
Walt Disney posted an estimate-beating second quarter with earnings per share of $1.61 versus an estimated $1.58, and sales of $14.92 billion versus an estimated $14.34 billion.
Since Disney’s acquisition of Twenty-First Century Fox, this is the first quarter documenting the contributions of Fox with a reported business total of $373 million and operating income of $25 million.
The success is all the more conspicuous with the record-breaking achievement of ‘Avengers: Endgame,’ which will start streaming when Disney launches its own streaming service, Disney+, later this year.
Disney’s acquisition of Fox also includes a 30% stake in the streaming service Hulu, for a total interest of 60%. Disney said it recorded a one-time gain of $4.9 billion as a result of re-measuring its initial 30% stake to fair value.
Other key highlights of the quarter include a 15% increase in direct-to-consumer and international segment revenue to $955 million, but the quarter also saw its segment operating loss jump from $188 million to $393 million. The latter was due to Disney’s ongoing investment in ESPN+, launching expenses of Disney+ coupled with loss from the consolidation of Hulu and higher losses from streaming technology services.
According to Disney's chairman and CEO, Robert Iger, the company is thrilled with the record-breaking success of ‘Avengers: Endgame’ and the film will be streamed exclusively on Disney+ starting December 11th.
DIS's Indicator enters downward trend
The Aroon Indicator for DIS entered a downward trend on September 18, 2023. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 201 similar instances where the Aroon Indicator formed such a pattern. In of the 201 cases the stock moved lower. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where DIS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where DIS declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where DIS's RSI Oscillator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on September 14, 2023. You may want to consider a long position or call options on DIS as a result. In of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for DIS just turned positive on September 12, 2023. Looking at past instances where DIS's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where DIS advanced for three days, in of 295 cases, the price rose further within the following month. The odds of a continued upward trend are .
DIS may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. DIS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.548) is normal, around the industry mean (4.556). P/E Ratio (67.114) is within average values for comparable stocks, (76.144). Projected Growth (PEG Ratio) (0.745) is also within normal values, averaging (1.727). Dividend Yield (0.000) settles around the average of (0.062) among similar stocks. P/S Ratio (1.719) is also within normal values, averaging (110.285).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. DIS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock worse than average.
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Industry description
Market Cap
High and low price notable news
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Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of amusement parks, hotels, television stations and radio broadcasting stations
Industry MoviesEntertainment
DIS and
Correlation & Price change
A.I.dvisor indicates that over the last year, DIS has been loosely correlated with NWS. These tickers have moved in lockstep 63% of the time. This A.I.-generated data suggests there is some statistical probability that if DIS jumps, then NWS could also see price increases.
| Ticker / NAME | Correlation To DIS | 1D Price Change % | ||
|---|---|---|---|---|
| DIS | 100% | +0.21% | ||
| NWS - DIS | 63% Loosely correlated | +1.27% | ||
| WBD - DIS | 57% Loosely correlated | +0.09% | ||
| NFLX - DIS | 57% Loosely correlated | -0.56% | ||
| NWSA - DIS | 56% Loosely correlated | +1.27% | ||
| PARAA - DIS | 56% Loosely correlated | +0.49% | ||
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