The Walt Disney Company (NYSE:DIS) is scheduled to announce its fiscal second-quarter earnings on May 10, 2023, after the market closes. The media and entertainment giant’s results might have benefited from cost control measures and further recovery of the pandemic-impacted business units.
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Further, the company’s Direct-to-Consumer segment, which includes streaming services Disney+, ESPN+, and Hulu, is likely to register growth from a rising subscriber base.
The Street expects Disney to post an adjusted profit of $0.95 per share in fiscal Q2, lower than the prior-year period figure of $1.08 per share. Meanwhile, revenue is pegged at $21.8 billion, representing a 7.8% year-over-year jump.
Yesterday, Morgan Stanley analyst Benjamin Swinburne raised the stock’s price target to $120 from $115 while maintaining a Buy rating.
The analyst believes that Disney has the potential to deliver solid adjusted EPS growth with support from strong performance in the Parks business. However, Swinburne remains concerned about the company’s Media business.
What is the Price Target for DIS Stock?
With 18 Buys and three Hold ratings, Walt Disney stock commands a Strong Buy consensus rating. On TipRanks, the average DIS price forecast of $129.50 implies 25.76% upside potential to current levels. DIS stock has gained 15.7% year-to-date.
DIS Stock’s Technical Analysis
Ahead of the Q2 earnings release, the technical analysis indicators suggest that it is a good time to buy Disney stock. Specifically, the Moving Averages technical indicator reflects that DIS stock is in an uptrend. The stock’s 50-Day EMA (exponential moving average) is 99.35, while its price is $102.97, making it a Buy.
Ending Thoughts
The company’s efforts to improve its Theme Parks and Streaming services are likely to attract more customers. During the earnings call, investors will probably be eager to hear whether the company reduced losses at its Disney+ streaming business.
