disney stock earnings preview

Disney (DIS) Stock Earnings Preview: Can it Beat Expectations?

By:Mike Butler

Disney Earnings Expectations

When does Disney report earnings?

Disney (DIS) reports earnings on May 10th after the market closes at 3:05pm CST.

The multi-faceted company seeks to rebound after a stall in Disney+ subscribers, likely due to growing competition in the streaming space from big-name tech stocks like $NFLX, $AAPL, and $AMZN.

Disney is expected to report an earnings-per-share (EPS) of $0.94 on $21.8 billion in revenue.

Even with the Disney+ streaming performance worries, the stock has climbed steadily from the 2023 opening print of $88.98 to just shy of $103 as of May 8th. The 2023 high of $118.18 was reaching on February 9th, and quickly collapsed the same day:

disney stock price performance 2023

Disney (DIS) Stock Earnings Expected Move

disney stock earnings expected move

Looking at the implied volatility of the options market in Disney, we can see the weekly expected move for the rest of the week is +-$5.63 - about 5% of the stock’s notional value. This is not too high of an expected move for an equity, but it is about 77% of the expected move through the June options cycle 39 days away from expiration, and over 50% of the expected move in the July options expiration cycle.

Based on this information, the market is placing a lot of weight on Wednesday's earnings report, given the high implied volatility in the weekly cycle relative to further-dated cycles.

disney stock option pricing

With DIS stock trading at $102.98, we can go to equidistant out-of-the-money (OTM) strikes to see if there is a difference in premium, or skewed premium.

In this case, the 108 call is trading for a bit more than the 98 put, both 5 points OTM from the current stock price – this tells us that Disney’s options market has call skew in the weekly cycle. This indicates that a high velocity move is being priced into the upside – this does not mean the stock is going to go up, but the market is pricing in the risk of a high velocity move to the upside just slightly.

Disney (DIS) Earnings Preview Summary

  • Disney reports earnings on May 10th at 3:05pm CST after the market closes
  • An earnings per share of $0.94 is expected to be reported
  • $21.8 billion in revenue is expected to be reported
  • The weekly options expected move for the stock price is +-$5.63, which is about 5% of the stock price itself

Tune in to see how DIS stock fares at 3:05pm CST on May 10th when the earnings report is released - Join Mike on Options Trading Concept Live every trading day from 11a-12p CST for a look at earnings trades, options strategy & concept discussions and more!

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