Walt Disney First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Walt Disney (NYSE:DIS) will unveil its latest earnings on Tuesday, February 5, 2013. Walt Disney is an entertainment company with operations in: media networks, parks and resorts, studio entertainment, and consumer products.

Walt Disney Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 77 cents per share, a decline of 3.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 88 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 78 cents during the last month. Analysts are projecting profit to rise by 11.1% versus last year to $3.41.

Past Earnings Performance: Last quarter, the company saw net income of 68 cents per share versus a mean estimate of profit of 68 cents per share. This comes after two consecutive quarters of exceeding expectations.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 14.4% to $1.24 billion (69 cents a share) from $1.09 billion (59 cents a share) the year earlier, meeting analyst expectations. Revenue rose 3.4% to $10.78 billion from $10.43 billion.

Wall St. Revenue Expectations: On average, analysts predict $11.22 billion in revenue this quarter, a rise of 4.1% from the year-ago quarter. Analysts are forecasting total revenue of $44.94 billion for the year, a rise of 6.3% from last year’s revenue of $42.28 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.07 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.33 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.3% to $12.81 billion while assets decreased 7.1% to $13.71 billion.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 21.3% in the second quarter of the last fiscal year and 24.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 0.6% in the first quarter of the last fiscal year, 6.1% in the second quarter of the last fiscal year and 3.9% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: There are 16 out of 25 analysts surveyed (64%) rating Walt Disney a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)