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Can Disney Escape Hollywood Woes In Q4?

Most big-name brands have already reported earnings this quarter, and therefore, a slew of investors now look longingly to the fourth quarter and the full fiscal year. Nevertheless, industry shakers such as the Walt Disney Company DIS have yet to post their most recent quarterly results.

Recently, Disney has felt the pressure from competitors. Streaming companies like Amazon AMZN and Netflix NFLX have altered the way people consume entertainment forever. This, in turn, has cut into Disney’s revenues and profits.

Therefore, Disney, like many other traditional entertainment companies, must grapple with how to grow—and perhaps pivot—in the midst of a swiftly changing media climate.

On top of that, streaming has forced Disney to try to adapt its linear TV model as cord-cutters trample its once-untouchable sport entertainment juggernaut, ESPN, at a pace few could have seen coming. And along with its impact on Disney’s television unit, streaming has helped contribute to declining box office sales.

Many Disney investors have dumped the stock based on these relatively severe headwinds, which has caused its shares to recede nearly 3% this year.

Still, based on our latest Zacks Consensus Estimates, Disney’s revenues are expected to inch up 0.05% in the soon-to-be reported quarter. On top of these top line projections, the company’s fourth-quarter earnings are expected to climb 1.82%.

However, investors will want to venture beyond earnings and revenue expectations in order to try to assess how Disney’s individual business units are projected to perform in its Q4.

This is where our exclusive non-financial metrics consensus estimate file can prove vital. These key stock-driving estimates are updated daily and are based on the independent research of expert stock analysts. For more information on the NFM file, click here.

Disney’s now world famous Parks and Resorts unit is expected to pop in the fourth quarter, but operating income in its Media Networks unit is projected to drop. This where investors would love to see Disney’s Hollywood-based revenues surge.

However, Disney’s Studio Entertainment unit is also projected to experience a substantial decline, proving that the company could not overcome the nearly industry-wide box office struggles.

According to our latest NFM consensus estimates, Disney’s Studio Entertainment revenues are expected to plummet 9.61% year-over-year to fall to $1.811 billion.

Hopefully for investors, the force will be with Disney in its first quarter of fiscal 2018 when it releases one of the most highly anticipated and hyped films of the year, Star Wars: The Last Jedi.

For more stock-moving estimates ahead of Disney’s Q4 report, check out our full guide: What To Expect From Disney's Q4 Earnings Report.

And make sure to check back here for our full analysis of Disney’s actual results later this week!

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Walt Disney Company (The) (DIS): Free Stock Analysis Report
 
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
 
Netflix, Inc. (NFLX): Free Stock Analysis Report
 
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