DIS Stock Dives 2.12%: Will Disney’s Earnings Be a Magic Carpet Ride or a Theme Park Drop?
Mouse House jitters hit investors as DIS shares slide ahead of earnings.
Wall Street's Main Street problem
While Cinderella's castle sparkles, Disney's stock chart looks more like Splash Mountain's plunge—down 2.12% as traders brace for earnings magic...or mayhem. The House of Mouse faces its quarterly reckoning with streaming wars raging and park attendance wobbling.
Analysts whisper about 'peak nostalgia' as Disney+ growth slows and superhero fatigue sets in. Meanwhile, activist investors circle like hyenas around Simba—will Bob Iger pull another rabbit from his executive hat?
Bonus cynicism: Nothing brings reality crashing down like earnings season—except maybe trying to monetize childhood memories through $12 churros.
TLDRs:
- Walt Disney stock dropped 2.12% to $116.59, trailing major U.S. indices in a volatile session.
- Investors await Disney’s Q2 earnings report on August 6, with 5.76% expected EPS growth.
- DIS underperforms Consumer Discretionary sector and broader S&P 500 over the past month.
- Analysts maintain a “Buy” rating as earnings and revenue growth projections remain strong.
Walt Disney Co. (DIS) shares slid 2.12% in Thursday’s trading session, closing at $116.59 and underperforming major indices, including the S&P 500 (-1.6%), Dow Jones Industrial Average (-1.23%), and Nasdaq (-2.24%). The after-hours trading session saw an additional dip to $116.07, down another 0.45%.
This decline comes amid broader market weakness and cautious investor sentiment ahead of the company’s next earnings announcement, scheduled for August 6.
With market pressure mounting, traders are keeping a close eye on Disney’s performance metrics and its outlook for the rest of the fiscal year.
Earnings in Focus as Investors Await Key Data
Disney is expected to report an earnings per share (EPS) of $1.47 for the quarter, a 5.76% increase year-over-year, alongside revenue of $23.67 billion, up 2.23% from the same period in 2024.
Full-year projections remain upbeat, with consensus estimates calling for $5.78 EPS (+16.3%) and $95.02 billion in total revenue (+4%).
Despite the recent slump in share price, the company maintains a Zacks Rank of #2 (Buy), indicating solid analyst confidence heading into earnings week. The stock’s valuation remains relatively attractive with a Forward P/E ratio of 20.62, slightly below the industry average of 21.05.
DIS Underperforms Peers in Consumer Discretionary Sector
Disney’s stock has slipped 3.94% over the past month, underperforming both the Consumer Discretionary sector’s 3.41% loss and the S&P 500’s gain of 2.25%. The Media Conglomerates segment, where Disney resides, holds a Zacks Industry Rank of 191, positioning it in the bottom 23% of over 250 tracked industries.
However, the company’s PEG ratio stands at 1.74, notably lower than the sector’s 2.51 average, suggesting that Disney’s growth is priced more reasonably compared to its peers. This could attract long-term investors looking for value in the entertainment and media landscape.
Analysts Hold Steady on Disney Despite Market Pressure
While no changes have been recorded in analyst EPS estimates over the past month, the consistency reinforces a stable outlook for Disney in the NEAR term. Analyst revisions are often closely watched as indicators of business performance and profitability trends, and Disney’s lack of downward movement in this area may bode well for earnings season.
With a market cap of $209.6 billion and a steady stream of revenue from parks, streaming, and media, Disney remains a heavyweight in the Consumer Discretionary space. Investors and analysts alike will be watching closely on August 6 to gauge whether the company can meet or exceed expectations and regain positive momentum in the weeks ahead.
