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Pre-Earnings Look at Walt Disney Stock

Shares have dipped after the company's two most recent reports

Deputy Editor
Nov 12, 2024 at 1:30 PM
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Walt Disney Co (NYSE:DIS) will report fiscal fourth-quarter earnings before the market opens on Thursday, Nov. 14. Analysts expect revenue to total $22.59 billion -- a roughly 6.4% year-over-year increase -- while the earnings estimate of $1.09 per share would point to a 32.9% year-over-year rise.

Stepping back, DIS settled lower the day after earnings in five of the past eight quarters, including a 9.5% drop in May and 4.5% dip in August. Shares averaged a 7.6% swing, regardless of direction, in the past two years. This time, options traders are pricing in a slightly larger 10.6% post-earnings swing.

While recent reports have shown demand for Disney parks are waning, the success of its streaming service Disney+ has proved a boon for the entertainment giant. Shares are up 10.5% in 2024, outpacing sector peers Paramount Global (PARA) and Warner Bros Discovery (WBD). Traders will also be parsing the report for clues into the search for CEO Bob Iger's successor.

Walt Disney stock was last seen 1.2% lower at $99.61. The equity hit its year-to-date high in April, topping out at $122.82, but the two aforementioned negative post-earnings responses were enough to move shares 5.1% lower over the last six months. DIS is now battling to stay above $100, a level it cleared with ease in early February.

DIS Chart November 122024

Ahead of the event, near-term options traders are targeting puts, per the DIS' Schaeffer's put/call open interest ratio (SOIR) of 0.69 that stands higher than 86% of readings from the past 12 months.

 

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