Walt Disney (DIS, $95.28) stock gets a reiterated Hold from Needham analyst
Walt Disney Co. shares got a reaffirmed Hold rating from Needham analyst Laura Martin.
For 4Q22, Martin maintained the revenue estimate at $21.2 billion (representing a y/y growth of 14% ). However, she lowered her forecast for the operating income by 29% to $1.9 billion.
Martin’s guidance reflects Content Sales Licensing & Other OI estimate of $100 million below 4Q21 levels (a loss of $65 million) and larger than expected costs from DIS continuing to scale back on 3rd party content licensing. The forecasts also incorporate higher DTC losses ($1.35 billion vs. $800 million before) relating to costs associated with selling less owned content to outside 3rd parties and higher than expected content expenditures, and a higher tax rate.
Martin’s estimate for Operating EPS for 4Q22 is down by 45% to $0.35.
For the longer-term, the analyst think that Disney has a balance capable of weathering a longer COVID-related earnings downdraft.
According to Martin, Disney will be a winner in the streaming competition in the long run.
DIS's RSI Indicator sits in oversold zone for 4 days
The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an uptrend is expected.
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Notable companies
The most notable companies in this group are Netflix (NASDAQ:NFLX), Walt Disney Company (The) (NYSE:DIS), Roku (NASDAQ:ROKU), Paramount Global (NASDAQ:PARA), iQIYI (NASDAQ:IQ), HUYA (NYSE:HUYA), AMC Entertainment Holdings (NYSE:AMC).
Industry description
Movies/entertainment industry include companies that produce and distribute motion pictures, and companies that operate general entertainment facilities like amusement parks and bowling centers. Some companies in this industry also have professional sports franchises. Live Nation Entertainment, Inc., Liberty Media Corp. and Viacom Inc. are some of the biggest companies in this space.
Market Cap
The average market capitalization across the Movies/Entertainment Industry is 9.41B. The market cap for tickers in the group ranges from 134 to 262.83B. NFLX holds the highest valuation in this group at 262.83B. The lowest valued company is LRDG at 134.
High and low price notable news
The average weekly price growth across all stocks in the Movies/Entertainment Industry was 3%. For the same Industry, the average monthly price growth was 9%, and the average quarterly price growth was 9%. LDSN experienced the highest price growth at 380%, while NETWF experienced the biggest fall at -28%.
Volume
The average weekly volume growth across all stocks in the Movies/Entertainment Industry was -11%. For the same stocks of the Industry, the average monthly volume growth was -14% and the average quarterly volume growth was 58%
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Valuation Rating: 52
P/E Growth Rating: 61
Price Growth Rating: 56
SMR Rating: 82
Profit Risk Rating: 86
Seasonality Score: 0 (-100 ... +100)