The Walt Disney (NYSE: DIS) Company is scheduled to report Q4-2010 results on Thursday, November 11, 2010. In the last four quarters ending June 2010 quarter, the company's reported EPS exceeded analysts' consensus estimates by margins in the range of 5.49% and 22.72%.
The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive Media. On September 15, 2009, the Company and the Hearst Corporation (Hearst) both contributed their 50% interests in Lifetime Entertainment Services LLC (Lifetime) to A&E Television Networks, LLC (AETN) in exchange for an interest in AETN. In December 2008, the company acquired an additional 26% interest in Jetix Europe N.V. In December 2009, the company announced that it has completed its acquisition of Marvel Entertainment Inc., a character franchise company. In July 2010, the company acquired Tapulous, Inc., a developer of music games for the iPad, iPhone, and iPod Touch. Through a merger agreement, Tapulous became a wholly owned subsidiary of The Walt Disney Company reporting into Disney Interactive Media Group.
The company reported net income for the third quarter of $1.3 billion or $0.67 per share, compared to $954 million or $0.51 per share for the year-ago quarter. Revenue for the third quarter increased 16% to $10.00 billion from $8.60 billion in the same quarter last year. Twenty-two analysts had a consensus revenue estimate of $9.38 billion for the third quarter.
Analysts' estimates for the fourth quarter 2010 range from a low of $0.39 to a high of $0.59, compared to a consensus estimate of $0.464 or year ago eps of $0.46. Analysts' revenue estimates for the fourth quarter 2010 range from a low of $9.36 billion to a high of $10.4 billion, compared to a consensus estimate of $9.94 billion or reported revenue of $9.87 billion in the same quarter a year ago. For the fourth quarter, the consensus EPS forecast has increased over the past week from $0.463 to $0.464 (0.22%) and increased over the past month from $0.458 to $0.464 (1.31%). Of the 27 analysts making quarterly forecasts, 5 raised and 3 lowered their forecast.
The stock closed Thursday at $36.51, compared to 52 week range of $27.01 and $37.98. YTD, the share price is up by $4.23 or 13.1%. A week ago, the company opened a new-concept DIS Store in San Francisco, a symbolic milestone in re-invention of DIS retail effort. This ambitious multi-year rebranding, aimed at boosting traffic via high-tech transformation of current stores into immersive retail destinations, with recreational and interactive features could be successful. I forecast 2010 earnings per share at $2.08, and see 2011's at $2.4. Based on these estimates, I set a target price of $39.
