To The Moon

$Walt Disney(DIS)$ is scheduled to release its fiscal-third quarter earnings after market close on Wednesday (09 Aug 2023). Market is expected Walt Disney to report EPS of 98 cents (Down 11% YoY) on revenue of $22.5 billion ( Up 4.6% YoY).

Continued pressure in advertising and linear operating income, slightly higher direct-to-consumer dilution and mixed Parks results would affect how the earnings turned out.

I will be looking out for the announcements on price hikes to the company's Disney+ streaming service and updates on the launch of an ad-supported tier in Europe set for later this year.

On top of that announcement, I will be looking for the several potential initiatives that the CEO has mentioned last month, for example, finding a strategic partner for ESPN and divesting the company's linear assets.

In this article, I will be looking at the fundamental data and technical analysis on how Disney share price have been trading prior to its expected earnings release.

Walt Disney (DIS) Earnings Data

I think Disney should be able to meet this EPS forecast but what is important would be the impact of their revenue stream.

Weak TV ad sales and direct-to-consumer declines might have a toil on its earnings.

Walt Disney (DIS) Earnings History

Disney should be able to match the EPS forecast if there is no drastic drop in the TV ad sales.

But I would be looking out for more details to be shared on their initiatives.

Walt Disney (DIS) Year-To-Date Earnings

Disney is down more than 0.5% in growth YTD. This could be due to the weak demand for the parks entrance collections.

The reduction in other revenue streams are also affecting the overall earnings.

Walt Disney (DIS) Financial Overview

There is a drop in revenue, cash and financing cash flow in Q1 2023. There might be very improvement on these 3 sections.

I hope the announcement on price hikes to the company's Disney+ streaming service and updates on the launch of an ad-supported tier in Europe set for later this year might help to improve these areas.

Walt Disney (DIS) Sentiment Analysis

Investors are negative about Disney, I believe it could be understandable as their share prices have been trending down for quite a long period.

Investors portfolios also went down 1.0% in the last 7 days and 0.4% in the last 30 days.

This could worsen if the earnings report show unfavorable plan to their planned initiatives.

Technical Analysis – Simple Moving Averages (SMA)

Disney is in a bear trend with only a brief bull trend. Something worth noting is that the price is below both SMA50 and SMA200.

This normally indicate a bearish downwards movement.

Technical Analysis – Relative Strength Index (RSI)

RSI momentum is normal, I think traders and investors are looking forward to what the earnings call have to offer.

There is no signs of selling or buying so I would not expect much movement in 09 Aug 23 before its earnings report release.

Technical Analysis – Average Directional Index (ADX)

ADX is below 20 which indicate a weak trend, with -DI above +DI suggest a bearish downward movement.

We will need a very good and positive earnings or guidance to turn the trend around.

Technical Analysis – Parabolic SAR (SAR)

Disney is still in a bearish downward movement with no signs of reversal.

I would wait for the earnings report call and see how the price action moves on 09Aug 2023.

Summary

From what I have observed, Disney seem to be in a bear trend and this could continue unless Disney could show a very good earnings report.

What is important is how the company planned to navigate some of the challenges facing them.

I will hold back to planning a trade.

Appreciate if you could share your thoughts in the comment section whether you think the advertising trends could be bringing down their revenues and do you think Disney can find another revenue stream to overcome that?

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.