Walt Disney Earnings Expected to Show Monster Growth
Our preview of the upcoming week's earnings reports include Walt Disney (DIS), Coinbase Global (COIN) and Bumble (BMBL).
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.
Sign up for Kiplinger’s Free E-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).
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Stock Market Today: Nasdaq Soars Ahead of Tesla Earnings
The EV stock rose nearly 2% ahead of its highly anticipated Q1 earnings report, due after tonight's close.
By Karee Venema Published
-
GM Stock Accelerates After Earnings Beat
General Motors beat expectations for the first quarter and raised its outlook for the year. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Nasdaq Soars Ahead of Tesla Earnings
The EV stock rose nearly 2% ahead of its highly anticipated Q1 earnings report, due after tonight's close.
By Karee Venema Published
-
Stock Market Today: Markets Rebound Ahead of Big Week for Earnings
Equities rallied on easing geopolitical tensions, upcoming quarterly results.
By Dan Burrows Published
-
Stock Market Today: Nasdaq Spirals as Netflix Nosedives
A big earnings boom for credit card giant American Express helped the Dow notch another win.
By Karee Venema Published
-
Stock Market Today: S&P 500, Nasdaq Extend Losing Streaks
The two indexes have closed lower for five straight sessions.
By Karee Venema Published
-
Stock Market Today: Dow Slips After Travelers' Earnings Miss
The property and casualty insurer posted a bottom-line miss as catastrophe losses spiked.
By Karee Venema Published
-
Stock Market Today: Stocks Stabilize After Powell's Rate-Cut Warning
The main indexes temporarily tumbled after Fed Chair Powell said interest rates could stay higher for longer.
By Karee Venema Published
-
What Is Proxy Season and Should You Vote?
Proxy season is upon us, allowing investors to weigh in on corporate leadership and policies. Here, we look at proxy season and whether you should vote.
By Kyle Woodley Published
-
Stock Market Today: Stocks Reverse Lower as Treasury Yields Spike
A good-news-is-bad-news retail sales report lowered rate-cut expectations and caused government bond yields to surge.
By Karee Venema Last updated