The Walt Disney Co. second-quarter earnings report is due on May 13, 2021. Considering the previous quarterly report, this guide will forecast the company’s second-quarter earnings report.
The Walt Disney Company (#Disney)reported earnings for its first fiscal quarter on February 12, 2021.
In the first quarter of the fiscal year 2021, Disney outperformed analysts’ earnings projections by a large margin. The entertainment conglomerate posted $0.32 earnings per share for the quarter, $0.77 more than analysts’ consensus estimates of $0.45. The company raised $16.25 billion during the quarter compared to analyst expectations of $15.84 billion. Over the last year, Walt Disney reported $2.02 in earnings per share.[1]
The company’s adjusted earnings per share were optimistic, exceeding expectations of a loss per share. Revenue and Disney+ subscriptions have also outperformed analyst expectations. However, both sales and adjusted EPS were substantially lower than in the prior year’s quarter as the company continues to face difficulties related to the pandemic.
Once again, the spread of the coronavirus had the greatest adverse effect on Disney’s Parks, Experiences, and Products division. Disney’s theme parks were closed or operated at reduced capacity, and cruise ships and guided tours were halted. Disneyland did, however, reopen 412 days later on April 30.
At its investor day on December 10, Disney announced that it had 86.8 million Disney+ subscribers. This is an increase from 73.7 million in early October and 60.5 million in early August. Disney+ will be available in Eastern Europe, South Korea, Hong Kong, and other markets this year.
The company now anticipates 230–260 million Disney+ subscribers by 2024, up from 60 to 90 million previously, with total global subscriptions reaching 300–350 million. [2]
When Disney announces earnings for the second quarter of the fiscal year 2021 on May 13, 2021, investors will be watching to see whether Disney’s cost-cutting measures prevented more losses despite falling sales. Analysts expect Disney to record adjusted losses per share for the second quarter in a row and sales declines for the third quarter in a row.
When Disney reports fiscal Q2 results on May 13, analysts expect the company to earn 27 cents per share on $15.85 billion in revenue. This will result in a 55% decline in earnings per share and a 12% decline in revenue year over year. [3].
Investors will also be interested in the number of subscribers reported by Disney for its Disney+ video streaming service. Despite facing massive, entrenched rivals, the service introduced in late 2019 has expanded rapidly. Analysts predict that overall Disney+ subscriptions will more than triple over the same three-month period last year.
Disney Stock Analysis
#Disney stock has also risen to new highs since recovering more than 140 percent from its coronavirus lows in March 2020. On February 8, Disney led theUSA30 to a new high with a 4.9 percent increase. In volume, 38 percent higher than average, shares cleared a 183.50 resistance of a five-week flat base. Disney’s stock advanced nearly 11%. However, it has since retreated and is now trading inside its second resistance zone, which is at 184.7. It could reach 190, creating a third resistance level. For the support, #Disney is making a first support level at 180.07, second support at 178.35, and third support at 176.8.[4]
- https://thewaltdisneycompany.com/app/uploads/2021/02/q1-fy21-earnings.pdf
- https://thewaltdisneycompany.com/investor-relations/
- https://thewaltdisneycompany.com/app/uploads/2021/02/q1-fy21-earnings.pdf
- https://www.barchart.com/stocks/quotes/DIS/cheat-sheet
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Adnan Rehman
Regional Market Analyst
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