Trading Disney Post Q1 Earnings

Disney’s latest first-quarter fiscal earnings report was the first for returning CEO Bob Iger. All eyes have been on the entertainment giant's streaming results as it competes with Apple TV, Netflix and others in the field.  

Learn more about Disney’s latest earnings results, what the analysts are forecasting for the stock and how to trade Disney shares below.

• The Invest.MT5 account allows you to buy real stocks and shares from 15 of the largest stock exchanges in the world.

Past performance is not a reliable indicator of future results or future performance.

All trading is high risk and you can lose more than you risk on a trade. Never invest more than you can afford to lose as some trades will lose and some trades will win. Start small to understand your own risk tolerance levels or practice on a demo account first to build your knowledge before investing. 

Disney Q1 Earnings Report

Here are some of the key highlights from the latest first-quarter earnings report from Disney: 

• Earnings per share of 99 cents per share vs an expected 78 cents per share 
• Revenue of $23.1 billion vs an expected $23.37 billion  
• Operating loss of $1.05 billion vs $1.2 billion expected 
• Revenue up 8% to $23.51 billion from $21.82 billion prior year 
• Parks, experiences and products division revenue up 21% 
• Disney+ total subscriptions 161.8 million vs 161.1 million expected 
• Board to potentially approve reinstatement of dividend by end of calendar year 

Disney’s latest earnings report showed that it beat Wall Street expectations on revenue and earnings per share results. However, the loss of around 2.4 million Disney+ subscribers is what investors have been focused on the most.  

Subscribers are the cornerstone of streaming companies and investors do not like to see less people using the company’s service. However, the loss in subscribers has been largely down to a recent price hike in the last quarter.  

The loss in subscribers was actually lower than what Disney expected which forecasted a loss of 3 million. It has been a difficult time for streaming companies as ads have dried up, consumers cut back on expenses and more competition enters the field.  

This is why Disney is considered a more diversified stock. It still has revenue from other areas. Its parks, experiences and products division posted revenue 21% higher than the prior year helping to boost its overall revenue figures.  

Returning CEO Bob Iger also announced a major reorganisation of the media and entertainment giant that will see the company now be made up of three divisions: Disney Entertainment, ESPN and Parks, Experiences and Products unit.  

With thousands of job cuts expected to save $5.5 billion in costs it also highlights the challenges facing the company. Fears of a consumer recession have led to lower subscribers and could lead to lower revenues in its theme parks.  

Disney is highly dependent on the health of the consumer economy which is facing a challenge due to rising inflation and interest rates. Tracking the macroeconomic environment may be useful over the next few quarters as this is likely to have an impact on Disney’s business operations.

Disney Stock Forecast - What do the Analysts Say?

According to analysts polled by TipRanks for a Disney stock forecast in the past 3 months, there are currently 19 buys, 3 holds and 0 sell ratings on the stock. The highest price level for a Disney stock forecast is $177.00 with the lowest price target at $107.00. 

The average price target for a Disney stock forecast is $129.15.

An Example Trading Idea for the Disney Stock Price

• An example trading idea for the Disney share price could be as follows:  
• Buy the stock on a break above the post earnings high at $118.50. 
• Target the highest analyst price target at $177.00. 
• Keep your risk small at a maximum of 5% of your total account.   
• Time Line = 1 – 6 months  
• If you buy 10 Disney shares:  
  • If target is reached = $585.00 potential profit ($177.00 - $118.50 *10 shares).

Remember that markets go up and down and it is unlikely the share price will move up in a straight line. In fact, it may even go much further down before it rises, especially considering how sensitive Disney’s business is to the health of the US economy.  

Be sure to exercise good risk management and always know how much you could potentially lose on a trade and the risks involved, as well as the costs.

With the Admirals Invest.MT5 account you can buy and sell US stocks with a commission from $0.02 per share. This means buying 10 shares in Disney stock would result in a commission of $0.20 ($0.02 * 10 shares) for executing a per-side transaction.

There is a low minimum transaction fee of $1. So, the example trading idea above would result in a commission of just $1 overall. 

How to Buy Disney Stock in 4 Steps  

With Admirals, you can buy shares in companies like Disney with a low commission of just $0.02 per share and a low minimum commission of just $1 on US stocks. 

1. Open an account with Admirals to access the Trader’s Room.   
2. Click on Trade on one of your live or demo accounts to open the web platform.   
3. Search for your stock at the bottom of the Market Watch window and drag the symbol onto the chart.   
4. Use the one-click trading feature, or right-click and open a trading ticket to input your trade size, stop loss and take profit level. 

Click on the banner below to trade Disney stock today. ▼▼▼ 

Do You See the Disney Stock Price Moving Differently?   

Remember that all analytics and trading ideas are based on the personal view and experience of the author.  

If you believe there is a higher chance Disney's share price will move lower, then you can also trade short from a CFD (Contracts for Difference) trading account which Admirals also provide.  

The Trade.MT5 and Trade.MT4 account allows you to speculate on the price direction of stocks and shares using CFDs.  

This means you can trade long and short to potentially profit from rising and falling stock prices. Learn more about CFDs in this How to Trade CFDs article. 

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