Categories

Is Walt Disney a good choice after corona crisis?

Small Start

It’s hard to believe the total market cap behemoth started out in 1923 as Disney Brothers Cartoon Studio, by Walt and his brother, Roy O. Disney.

In 1955, Walt’s theme park came into fruition as Disneyland in Anaheim. A second location in Orlando, Fla., was announced in 1965. The following year, Walt passed away, leaving Roy in charge. Walt Disney World opened in 1971, two months before Roy’s death. But the company kept growing.

During the fiscal year ended in September, the theme park and media giant generated nearly $70 billion in sales.

Fundamentals

The current EPS is around 33 and reflects a five-year earnings growth rate of 4%, which includes a flat result in fiscal 2017 and a 19% drop in fiscal 2019. You can see all of this on the page: https://stockvoting.net/stocks/DIS/

Analysts expect a 68% EPS drop in the current fiscal year ending in September, followed by a 98% increase in fiscal 2021, according to FactSet.

For fiscal Q2, Disney’s EPS tumbled 63% to 60 cents, well below Zacks forecast for 83 cents. Revenue increased 21% to $180.1 billion, just missing views for $18.03 billion. Management estimated as much as a $1.4 billion impact on income from continuing operations.

Disney also announced it will skip a July dividend payment to save $1.6 billion in cash. It pays a semiannual dividend of 88 cents.

It’s often best to stick with stocks that carry an EPS Rating of 80 or higher. Given its success in streaming services as Disney+ ramps up, though, Disney is definitely a stock to keep watching.

This is very beneficiary through the Corona crisis and will probably enhance this market over this the next months.

2
This content is available exclusively to members of this creator's Patreon at $0.01 or more.

By Maximilian Feld

0

Hobby Trader, working in the finance sector.
Happy to share my analysis with you!

Leave a Reply

Your email address will not be published. Required fields are marked *