Thursday, August 12: A Big Day for Disney Stock

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Walt Disney Company

After the close of trading on Thursday, we’ll have a better idea about how the current fiscal year is going for DIS…

It’s not necessarily on the calendar as a red-letter day for Disney fans, but DIS stockholders remain hopeful that The Mouse is a bull on Thursday.

DIS Stockholders Hope Mickey Looking Strong

Per their recent release:

Disney Stock
Image: Richard Drew/AP

The Walt Disney Company will discuss fiscal third quarter 2021 financial results via a live audio webcast beginning at 4:30 p.m. ET / 1:30 p.m. PT on Thursday, August 12, 2021.”

At the moment, DIS is trading at 177.07, which — admittedly — is a far cry from the company’s low at the start of the COVID-19 pandemic (85.98 in March 2020) but nowhere near its current year (and time) high close (201.91 in March 2021).

Moreover, the lack of upward movement certainly gives some investors pause.

Disney Doesn’t Have to Break the Bank

DIS, Disney Stock
Image: Disney

However, at least one stock analyst thinks Thursday’s report need not be gangbusters for investors to feel confident enough to jump on board the Disneyland & Santa Fe Railroad.

“Wall Street pros see a big year-over-year jump in this week’s numbers,” said Rick Munarriz of The Motley Fool. “Analysts see Disney checking in with revenue of $16.8 billion for its fiscal third quarter, a nearly 43% increase from the same period a year earlier. The bottom line should be even better, as the profit of $0.56 a share that the market is targeting would be a sevenfold improvement.”

Of course, there’s plenty of reason to look on the dark side, too.

Munarriz added:

Disney proved mortal last time out. It fell short of market revenue expectations in May for its fiscal second-quarter report, blamed in part on weak growth in Disney+ subscribers. The 103.6 million Disney+ accounts it had at the end of March were short of many Wall Street projections, and average revenue per user continued to decline as the platform expanded to less lucrative international markets.”

Meanwhile, Disney also needed to jump return to masking indoors. And, recent in-person box office cues (and queues) were not what entertainment analysts care to see.

Mickey Ain’t Afraid of Bears

However, going by the numbers, Vantage Point explained, “Despite challenges, analysts are mostly optimistic about the Disney stock price. Out of the 55 analysts covering the stock, 43 issued buy ratings, 11 have neutral ratings, and only one is bearish and issued a sell rating.”

Moreover, Munarriz added, “At a time when content is king, and media stocks are royalty, Disney shares have been neglected in the market rally. Even a decent report could be enough to get Mickey Mouse moving in the right direction again.” 

So, Thursday will have me and my 12.5 shares of DIS listening intently.

 

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