The Walt Disney Co. (DIS) is scheduled to release its fiscal 2019 first quarter results after the closing bell Tuesday, with Wall Street expecting the media company to report results below the totals from a year ago.
Disney benefited from big winter releases and the positive effects from the tax reform law during its fiscal first quarter last year. Without those tailwinds, most analysts have the company under performing last year's results.
Analysts polled by FactSet are expecting the company to report earnings of $1.54 per share on revenue of $15.05 billion. Last year, the company reported earnings of $1.89 per share on revenue of $15.35 billion.
Action Alerts PLUS holding Disney's most valuable asset is its catalog of intellectual property. However, the company's direct to consumer (DTC) plans are still cloudy, which may be cause for concern after former ABC Entertainment President Channing Dungey left the company to join DTC rival Netflix Inc. (NFLX)
"While the direct to consumer push is certainly going to require an added level of investment that could pressure the stock, or at least cap upside in the near-term, we believe the longer-term opportunity to be highly attractive," AAP senior researcher Zev Fima told TheStreet. "Given the company's deep intellectual property portfolio, we think a streaming platform from Disney could be a formidable competitor to the likes of Netflix and others in the space."
Disney owns the rights to both Star Wars and Marvel Studios, providing its movie studio wtith some of the most valuable film franchises in Hollywood today. That could help propel the company in 2019.
"We continue to recognize the long-term attraction of Disney's leading portfolio of intellectual property," BMO Capital analyst Daniel Salmon wrote on Monday. "Looking forward, we remain positive on Disney's fiscal 2019 slate including Frozen 2, Star Wars: Episode IX, Avenger: Endgame, and The Lion King."
BMO lowered Disney's price target slightly, to $109 from $110, while maintaining its "market perform" rating.
Disney shares are up 0.45% Monday to $111.80. Shares are down about 3% over the last year.