Disney is set to report Q2'16 results after the bell today . They also have a conference call scheduled to follow at 5:00pm ET.

Key Metrics

  • Q2: Current Consensus is calling for adj EPS of $1.40 on revenues +6% Y/Y to $13.2 bln.
  • FY16: Current Consensus is calling for adj EPS of $5.84 on revenues +8% Y/Y to $56.5 bln.
  • Disney has reported adjusted quarterly EPS in-line with, or better than, Consensus estimated every quarter since Q2 2011.

Concerns around Disney

  • ESPN/Cable Networks
  • The largest concern around Disney is that services like Netflix, HULU, and Amazon Prime are going to create headwinds for cable subscriptions going forward as consumers ‘cut the cord.'

  • Bob Iger successor

Movie Slate

  • It is worth mentioning the movie slate for Disney. As we sit today, Disney's Captain America: Civil War and The Jungle Book hold the top two spots at the box office. Although these movies will not be contributing to this quarters results, they have helped fuel optimism around the Studio Networks segment. 
  • In addition, Disney has Finding Dory (June 17th) and Rogue One: A Star Wars Story (Dec 16) scheduled to open this year, which are expected to continue to drive growth in the segment.

Operating Income of $.9 bln; up 23% Y/Y