What to Expect When Disney (DIS) Reports Earnings Results on Tuesday

NEW YORK (TheStreet) -- The Walt Disney Co. (DIS) is expected to release its 2015 second quarter earnings results about 8 a.m. on Tuesday morning. Disney had previously announced that its earning would be released after the market close on Tuesday, but due to the death of the husband of one of Disney's board members the timing of the release was changed. 

The change was made so representatives of the company may attend the funeral of SurveyMonkey CEO Dave Goldberg, TheWrap reports. Disney board member Sheryl Sandberg was married to Goldberg and is also COO of Facebook (FB). 

Analysts are expecting the family entertainment and media giant to post a one cent decline in earnings and a rise in revenue for the quarter ended March 2015.

Disney has been forecast to post earnings of $1.10 per share on revenue of $12.25 billion for the most recent quarter.

For the 2014 second quarter Disney said its adjusted earnings were $1.11 per share on revenue of $11.65 billion.

In 2014 Disney was riding high on the wave of success its latest animated princess feature Frozen had brought. The film was released at the end of 2013.

Additionally, over the weekend Disney's latest Marvel franchise movie Avengers; Age of Ultron saw the second biggest domestic box office opening in history, Variety reports. The superhero flick started the summer blockbuster season with $187.7 million in its debut.

The movie opened internationally last week and its worldwide box office earnings are $626.7 million after 12 days in theaters, Variety said.

Shares of Disney are up by 0.29% to $110.84 in mid-morning trading on Monday.

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Separately, TheStreet Ratings team rates DISNEY (WALT) CO as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISNEY (WALT) CO (DIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • DIS's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 8.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DISNEY (WALT) CO has improved earnings per share by 23.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISNEY (WALT) CO increased its bottom line by earning $4.25 versus $3.38 in the prior year. This year, the market expects an improvement in earnings ($4.90 versus $4.25).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Media industry average. The net income increased by 18.6% when compared to the same quarter one year prior, going from $1,840.00 million to $2,182.00 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISNEY (WALT) CO's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 53.05% to $1,855.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 41.37%.
  • You can view the full analysis from the report here: DIS Ratings Report

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