Disney(US:DIS) ZACKS·2024-06-07 14:05Core Viewpoint - Walt Disney's stock has recently been underperforming, with a return of -4.3% over the past month compared to the S&P 500's +3.5% and the Media Conglomerates industry’s -10.4% [1] Earnings Estimates - For the current quarter, Disney is expected to report earnings of $1.19 per share, reflecting a year-over-year increase of +15.5%. However, the Zacks Consensus Estimate has decreased by -1.8% in the last 30 days [3] - The consensus earnings estimate for the current fiscal year is $4.76, indicating a +26.6% change from the previous year, with a slight decrease of -0.2% over the last month [3] - For the next fiscal year, the consensus estimate is $5.44, showing a +14.4% increase from the prior year, with a change of -0.6% in the past month [3] Revenue Growth - The consensus sales estimate for the current quarter is $22.94 billion, representing a year-over-year increase of +2.7%. For the current and next fiscal years, the revenue estimates are $91.15 billion and $95.66 billion, indicating changes of +2.5% and +5%, respectively [6] Recent Performance - In the last reported quarter, Disney generated revenues of $22.08 billion, a +1.2% increase year-over-year. The EPS was $1.21, compared to $0.93 a year ago [7] - The reported revenues were slightly below the Zacks Consensus Estimate of $22.13 billion, resulting in a revenue surprise of -0.23%. However, the EPS exceeded expectations with a surprise of +8.04% [7] Valuation Metrics - Disney's valuation is assessed using various multiples such as P/E, P/S, and P/CF, which help determine if the stock is fairly valued, overvalued, or undervalued [8] - The Zacks Value Style Score grades Disney as a C, indicating that it is trading at par with its peers [10] Overall Outlook - The Zacks Rank for Disney is 3 (Hold), suggesting that the stock may perform in line with the broader market in the near term [11]