What can be said about the Walt Disney company that has not been said before? One thing for sure is that this is no small fry business, and it will stand the test of the COVID-19 time.
The media conglomerate has been with us for decades and holds some of the most famous franchises of all time like Pixar, Marvel and Lucasfilm, to name a few.
Click logo to view Walt Disney Company (DIS) shares.
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Fundamentals
Disney reported their second fiscal quarter earnings ending the 28th of March 2020 on the 5th of May 2020, which showed some of the impacts of the COVID-19 pandemic. The report delivered mixed results and came in below analyst’s expectations. Diluted EPS for the quarter decreased 63% to $0.60 from $1.61 in the prior-year quarter with a surprise beat in Y/Y Revenue of 20.7%.
Streaming services are still going strong with Disney +, and the new full acquisition of Hulu continue to payoff for the company. Disney + subscribers increased to 33.5 million for the 26.5 million in the previous quarter, and Hulu subscribers were 32.1 million for the previous quarters 26.5 million.
Walt Disney Company (DIS) share overview:
- Sector: Communication Services.
- Market Cap of $210.09 billion.
- Dividend Yield: 0 % (suspended)
- Price/Earnings (LTM): 43.6x
- Next Earnings: 7 August 2020.
- 52 Week Range low of $85.76 and $151.64 per share high.
To keep the company in a position of strength, Disney has decided to suspend its semi-annual dividend for the first half of the year, which was due to be paid in July. This decision should be saving the company around $1.6 billion at the current rate.
To boost shareholder expectations, theme parks like Shanghai Disneyland and Disney springs will come back to life which could jump-start the bottom line under strict health measures.
Chart Life
The price action is well above our previous research note’s $106.51 support level and the 50-day Simple Moving average of price (blue line). Price is pushing higher towards the analyst expectation price (red line) and a possible resistance level at $126.00 per share.
The long-term target price remains at $135.89 per share for the time being and will be watched closely for a reversal if fundamentals don’t hold up.
Portfolio particulars
- Portfolio Buy (Current)*
- Portfolio Buy opportunity: above $106 per share**
- WhatsTheBeef long term target price: $135.89 per share.
Know your company: Walt Disney Company (DIS)
- Walter Elias Disney was an American entrepreneur, animator, writer, voice actor and film producer. A pioneer of the American animation industry, he introduced several developments in the production of cartoons.
- As a film producer, Disney holds the record for most Academy Awards earned by an individual, having won 22 Oscars from 59 nominations. He was presented with two Golden Globe Special Achievement Awards and an Emmy Award, among other honors.
Click logo to view Walt Disney Company (DIS) shares.
on EasyEquities
Source – EasyResearch, Walt Disney Company, SeekingAlpha, The Motley Fool, Koyfin, Wikipedia.
*Portfolio Hold (Current) refers to investors who already hold the stock within their portfolio.
**Portfolio Buy opportunity refers to Technical level crossed, which might imply that the markets behavior would support the outlook and Close above refers to a share price close above a Technical Resistance level.
Take note – all stock data and pricing were taken on the 18th of May 2020 during the U.S. market open.
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Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
