Although the busiest stretch of the second-quarter earnings season is mercifully behind us, it's far from over. Among the notable names on this week's earnings calendar is entertainment giant Walt Disney (DIS, $105.71).
DIS is slated to report its fiscal third-quarter results after Wednesday's close. Analysts, on average, estimate earnings of $1.00 per share for the three-month period ended June 30, up 44.9% on a year-over-year (YoY) basis. The Street forecasts revenue to jump 20.6% to $20.5 billion.
While Disney's theme parks likely benefited from an easing of COVID-related lockdowns, investors and traders will be interested to see what impact high inflation had on consumers' purchasing power, says Charlie Williams, equity research assistant at U.K.-based financial firm Hargreaves Lansdown.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But as important as parks are to the entertainment conglomerate's bottom line, Disney's direct-to-consumer segment will likely draw the bulk of the market's attention. After all, competitor Netflix (NFLX) last month said it lost nearly 1 million subscribers in the April-to-June period, Williams adds. In its fiscal second quarter, Disney's Disney Plus streaming service added a greater-than-expected 7.9 million subscribers.
Furthermore, the fact that Disney suspended its dividend in 2020 and has not repurchased stock since 2018 "puts added pressure on successful execution of Disney Plus, which requires significant capital," says CFRA Research analyst Kenneth Leon (Hold). For the company's fiscal Q3, Leon expects earnings per share (EPS) in line with the consensus, but anticipates slightly higher revenue of $21 billion.
Coinbase Global Revenue Dropped Sharply in Q2
Coinbase Global (COIN, $91.60) made headlines last week when it unveiled a partnership with BlackRock (BLK), the world's largest asset management firm. The deal will allow BlackRock's institutional investors to buy bitcoin via the cryptocurrency platform.
The news gave a much-needed boost to COIN stock, which is down more than 64% for the year-to-date. Can the company's second-quarter earnings report (due after the Aug. 9 close) keep the wind at its back?
Mizuho Securities analyst Dan Dolev isn't so sure. While volume on the trading platform remains depressed, "consensus continues to overestimate COIN's revenue generation power." Dolev adds that he remains "cautious and Neutral" on COIN stock.
As for those consensus estimates, analysts, on average, expect Coinbase to report a per-share loss of $2.68 for its second quarter – compared to the per-share profit of $6.42 it earned in the year-ago period. Revenue is projected to arrive at $830.5 million (-53.2% YoY).
Bumble Stock Shines Ahead of Q2 Earnings
Bumble (BMBL, $36.38) has been a bright light in 2022, with shares up 7.4% for the year-to-date – easily outperforming the broader market's roughly 13% loss.
"Bumble has been the best-performing stock in our digital media coverage as the online dating landscape has seen tailwinds from continued re-opening momentum with little macro impact to date," says Raymond James analyst Andrew Marok (Outperform).
The analyst believes BMBL's second-quarter results – slated for release after the Aug. 10 close – will be roughly in-line with company guidance, as data from Google Trends and Sensor Tower points to a solid environment for user growth. Although most other major apps in the sector saw quarter-over-quarter declines, Google Trends search volume for "bumble" was up 9% over Q1. As such, Marok believes Bumble added 50,000 paying users in Q2.
Consensus estimates for Bumble's second quarter are upbeat too. The company is expected to post a per-share loss of 1 cent, narrower than the 5 cents per share it lost in Q2 2021. Revenue is forecast to land at $219.4 million (+17.8% YoY).
-
Amazon Ends Free Shipping Benefit Sharing with Non-Household MembersStarting October 1, Prime members will no longer be able to share shipping perks with those outside their household.
-
Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
-
If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
Dow Dives 542 Points on Soft Jobs Data: Stock Market TodayThe last day of a busy week ends with the first greater-than-1% move in either direction in more than a month.
-
Stocks Are Up and Down on Fed Day: Stock Market TodayIn another sign of changing times, JPMorgan has partnered with Coinbase to enable cryptocurrency purchases with credit cards.
-
Stock Market Today: Stocks Step Back From New HighsInvestors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
Stock Market Today: Markets Chop Up More Trump ThreatsStocks are grinding to new highs on light summer volume, and bitcoin is only getting bigger.
