Three Things to Watch for in Disney Earnings After Tuesday's Close

Disney (DIS) is set to report fiscal third quarter earnings after the closing bell on Tuesday, August 4th. Analysts expect earnings per share of $1.42, up from $1.28 last year, on sales of $13.22 billion. Morningstar analyst Neil Macker will be watching revenues from the media conglomerate’s movie studios. ‘Pixar’s Inside Out film has blown away everyone’s expectations,’ he said. The film brought in over $90 million during its debut weekend back in June. Macker is also keeping an eye out for the performance of Disney’s media networks division, which accounted for nearly half Disney’s revenue last quarter and includes the ABC and ESPN channels. ‘We’re watching ESPN, that’s the crown jewel of Disney,’ he added. ‘You’ve seen three high-profile talent defections: Bill Simmons, Keith Olbermann and Colin Cowherd. We want to know what the plan is to replace this talent.’ He said ESPN is also facing competition from 21 Century Fox’s (FOX) network of sports channels, including Fox Sports and Fox Sports 1. Finally, Macker is watching Disney’s theme parks division, which saw a 6 percent slump in sales last quarter, on a year-over-year basis. TheStreet’s Scott Gamm reports from New York.