The house of mouse is reporting earnings Thursday after the bell.
Martin Baccardax, TheStreet's London Bureau Chief and Chris Versace, Real Money contributor joined TheStreet's Katherine Ross to break down what they expect to see from Disney's (DIS) - Get Report earnings and how to trade the stock.
"I think it's going to be an exceedingly complicated [quarter] because they still have to factor in the complications from the Fox acquisition, the spending that Disney has to make to get the Disney+ offering up and running and it launches on the 12th of November and of course the money that they're going to have to spend on content and other things going forward. So the street is looking for 95 cents a share, looking for revenues of around 19 billion. To be perfectly honest, that won't be the important number. What we all need to look for is what the company is saying about 2020 and what their costs are going to be, where their investments are going to be directed, and ultimately what the success of this platform is going to be amidst the streaming wars. We assume that they're going to lower their earnings forecast for 2020 by how much remains to be seen. But it'll be in the region of about $5.30 a share and we'll probably be looking at full-year revenues around $80 to 81 billion. But any big deviation from those numbers will be very serious and the implications for the stock will be equally so," said Baccardax.
Watch the full video above to see how Versace is looking to trade Disney.
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