Disney (DIS, $179.42) crushes Q3 earnings expectations
Walt Disney posted third quarter earnings that surpassed analysts’ expectations, on the back of solid subscriber figure for Disney+ and consumer attendance amid reopenings for its parks and experiences category.
The entertainment behemoth’s earnings came in at 80 cents per share, handily beating the 55 cents expected in a Refinitiv survey of analysts.
Revenue rose +44% from the year-ago quarter to $17.02 billion vs $16.76 billion expected in the survey.
Subscriber count for Disney+ streaming platform came in at 116 million for its third quarter, compared to 114.5 million StreetAccount estimated. The segment had 103.6 million subscribers in its fiscal second quarter.
Average monthly revenue per subscriber for Disney+ fell -10% year over year to $4.16. According to the company, the decrease was due to a higher mix of Disney+ Hotstar subscribers compared with the year-ago quarter.
Disney’s Parks, Experiences and Products business returned to profitability for the first time since the pandemic started. Revenue in the segment surged +308% to $4.3 billion, as all of its parks were reopened during the fiscal third quarter. Operating income in the segment bounced back to $356 million, compared with a loss of -$1.87 billion during the same quarter last year.
DIS's RSI Indicator recovers from oversold territory
The RSI Oscillator for DIS moved out of oversold territory on May 31, 2023. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 31 similar instances when the indicator left oversold territory. In of the 31 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 69 cases where DIS's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that 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 303 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.
The Aroon Indicator entered an Uptrend today. In of 185 cases where DIS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 11, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on DIS as a result. In of 95 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for DIS turned negative on May 11, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at .
DIS moved below its 50-day moving average on May 11, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for DIS crossed bearishly below the 50-day moving average on May 16, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 17 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over 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 .
Fundamental Analysis (Ratings)
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. DIS’s price grows at a lower 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 (1.695) is normal, around the industry mean (4.225). P/E Ratio (40.323) is within average values for comparable stocks, (74.079). Projected Growth (PEG Ratio) (0.743) is also within normal values, averaging (2.672). DIS has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.059). P/S Ratio (1.907) is also within normal values, averaging (111.489).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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 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 89, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
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 NWSA. These tickers have moved in lockstep 65% of the time. This A.I.-generated data suggests there is some statistical probability that if DIS jumps, then NWSA could also see price increases.
| Ticker / NAME | Correlation To DIS | 1D Price Change % | ||
|---|---|---|---|---|
| DIS | 100% | +2.46% | ||
| NWSA - DIS | 65% Loosely correlated | +0.59% | ||
| NWS - DIS | 64% Loosely correlated | +0.69% | ||
| NFLX - DIS | 61% Loosely correlated | -0.66% | ||
| PARAA - DIS | 60% Loosely correlated | -0.39% | ||
| PARA - DIS | 60% Loosely correlated | +0.06% | ||
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