Happy almost Friday!
Let's make this quick. After all, I've got a plane to catch and you all have dinners and happy hours to get to.
Here's what you need to know on TheStreet.
Disney Reigns Supreme
The company reported earnings per share of $1.48, beating analyst expectations of $1.34.
And, of course, Robert Iger, CEO of Disney, said that he was "very pleased" with the company's fiscal year 2018.
Earlier Thursday, Real Money's Stephen Guilfoyle broke down his game plan for the stock and what he's looking at in the earnings report.
"The mighty House of the Mouse will report its fourth-quarter results tonight after the closing bell. EPS expectations are for $1.34, or 22% year-over-year growth. Whispers I have heard are in between $1.31 and $1.33. Revenue growth is projected at 8% over last year.
"One thing I do not expect to impact the share price will be those numbers, as long as they are 'ballpark' close. What will matter more to me as an investor will be comments made on the integration of the assets purchased from Twentieth Century Fox (FOXA - Get Report) . Also important will be comments made on theme park performance as well as studio performance.
"Most important, however, will be the progress made for the firm's direct-to-consumer business lines. In other words, how well is ESPN plus (launched six months ago) actually doing? And how is the stand-alone streaming service, planned to launch sometime in calendar year 2019, actually progressing? This is key. I want to hear something on the impact on margins of the Fox acquisition and the spending on building this streaming television infrastructure. I am not worried, obviously, about content. Disney has plenty of that. And much of it, contractually, will be permitted to come home some time next year. (Yes, that's a shot at you, Netflix (NFLX - Get Report) )."
Feel Bullish on Apple?
A quick hint? Take a look at that services business.
Here's what Kenwell had to say:
"Investors view this as muddying the transparency waters, and they're not wrong for feeling that way. However, this is Apple's way of telling investors that the metric is no longer that important. Case in point, consensus expectations for iPhone sales last quarter stood at 47.5 million units. Selling 'just' 46.9 million iPhones was a slight miss, but how about an average iPhone selling price of $793 and iPhone revenue of $37.2 billion crushing expectations of ~$751 and $35.6 billion, respectively?
"Unit volumes aren't relevant and this is Apple's way of saying it. Further, Services is beginning to play a much larger role. The unit hit $10 billion in revenue during Q4, growing 27% year-over-year. For the Patrick Star-esque investors who live under a rock, we're talking about a segment with an annual run rate of $40 billion growing north of 25%.
"Remember, this is the segment that investors used to critique as 'too small to move the needle.' Well, how about now? These high-margin revenues are helping to drive both top and bottom line growth, and it's one reason why well-respected analyst Katy Huberty of Morgan Stanley raised her price target Thursday morning.
"While maintaining her buy rating, Huberty bumped up her price target to $253 from $226, implying more than 20% upside from current levels. In fact, the average price target on Wall Street sits up near $237, implying almost 15% upside from here."
Here's Your 5G Investment Play
TheStreet contributor Jon Markman has your next play -- if you're into 5G that is.
Fifth generation wireless is a game changer. It means the end of network latency. And it is here today, three years ahead of schedule.
Verizon (VZ - Get Report) , AT&T Corp. (T - Get Report) and T-Mobile (TMUS - Get Report) are now rolling out 5G. These ultrafast networks will expedite the technologies of tomorrow, bringing new business models.
Among other products, it makes the 5G routers Verizon and others will use to bring broadband video on demand to U.S. households. The stars have aligned. After years of failed promise, the San Diego company is finally in the right place, at the right time.
Consumers have been waiting for 5G for years. Many assumed they would see the benefits of fast wireless first on their new iPhones. That is not in the cards. Apple signaled last week 5G will not hit its gear until 2021.
Alright, folks, that's a wrap for tonight.