Erste Group Bank Forecasts Weaker Earnings for Walt Disney

Key Points

• Erste Group slightly cut its FY2027 EPS forecast for Walt Disney to $7.32 from $7.35, a modest downward revision that signals minor sell‑side trimming of expectations.
• Reports that Disney will eliminate roughly ~1,000 jobs (mainly in marketing), along with several lowered price targets, have fueled negative near‑term sentiment and contributed to recent stock weakness.
• Despite these headwinds, the Street consensus remains a Moderate Buy with an average price target of $132.19, while shares trade near $99 within a 12‑month range of $81.19–$124.69.

The Walt Disney Company (NYSE:DIS - Free Report) - Equities researchers at Erste Group Bank dropped their FY2027 earnings per share (EPS) estimates for Walt Disney in a research report issued on Thursday, April 2nd. Erste Group Bank analyst S. Lingnau now expects that the entertainment giant will post earnings of $7.32 per share for the year, down from their previous forecast of $7.35. The consensus estimate for Walt Disney's current full-year earnings is $5.47 per share.

Walt Disney (NYSE:DIS - Get Free Report) last announced its quarterly earnings data on Monday, February 2nd. The entertainment giant reported $1.63 EPS for the quarter, beating the consensus estimate of $1.57 by $0.06. The firm had revenue of $25.98 billion for the quarter, compared to analyst estimates of $25.54 billion. Walt Disney had a return on equity of 8.90% and a net margin of 12.80%.The company's revenue was up 5.2% on a year-over-year basis. During the same period in the prior year, the company earned $1.40 EPS.

DIS has been the topic of several other reports. The Goldman Sachs Group reissued a "buy" rating and set a $151.00 price target on shares of Walt Disney in a research note on Monday, February 2nd. Guggenheim decreased their price target on shares of Walt Disney from $140.00 to $115.00 and set a "buy" rating on the stock in a research note on Wednesday, March 18th. UBS Group reissued a "mixed" rating on shares of Walt Disney in a research note on Monday, February 2nd. Weiss Ratings downgraded shares of Walt Disney from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, February 3rd. Finally, Jefferies Financial Group lowered their target price on Walt Disney from $136.00 to $132.00 and set a "buy" rating for the company in a research note on Tuesday, February 3rd. Eighteen equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Walt Disney presently has a consensus rating of "Moderate Buy" and a consensus price target of $132.19.

Walt Disney Price Performance

Shares of Walt Disney stock opened at $98.95 on Thursday. Walt Disney has a 12 month low of $81.19 and a 12 month high of $124.69. The company has a current ratio of 0.67, a quick ratio of 0.61 and a debt-to-equity ratio of 0.31. The business's 50-day moving average price is $102.15 and its 200-day moving average price is $107.83. The firm has a market capitalization of $175.28 billion, a PE ratio of 14.55, a price-to-earnings-growth ratio of 1.35 and a beta of 1.44.

Institutional Investors Weigh In On Walt Disney

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Old North State Trust LLC bought a new stake in shares of Walt Disney in the 4th quarter valued at about $547,000. J. Derek Lewis & Associates Inc. bought a new position in Walt Disney during the 4th quarter valued at approximately $372,000. Stance Capital LLC raised its position in Walt Disney by 7.5% during the 4th quarter. Stance Capital LLC now owns 12,455 shares of the entertainment giant's stock valued at $1,417,000 after purchasing an additional 867 shares during the last quarter. Cornerstone Planning LLC bought a new position in Walt Disney during the 4th quarter valued at approximately $3,000,000. Finally, Osbon Capital Management LLC bought a new position in Walt Disney during the 4th quarter valued at approximately $26,000. Institutional investors own 65.71% of the company's stock.

More Walt Disney News

Here are the key news stories impacting Walt Disney this week:

• Positive Sentiment: Distribution and experiences tailwinds — Disney is expanding ESPN content to more international markets and has park initiatives (ride reopenings, holiday dining promos) that support near‑term box office/park revenue and subscriber engagement. Analysts Cheer as Disney Adds ESPN Sports
• Neutral Sentiment: Price target and ratings changes — Barclays trimmed its price target from $140 to $130 while keeping an overweight rating; Raymond James recently upgraded Disney to Outperform with a $115 target. These mixed analyst moves create both support and limit upside expectations. Barclays Lowers Price Target
• Negative Sentiment: Planned layoffs and organizational cuts — Multiple outlets report Disney will eliminate as many as ~1,000 positions, concentrated in marketing, as the new CEO pursues cost savings. The market appears to be selling on the news, reflecting investor concern about demand, disruption to growth initiatives, and execution risk. Disney plans to cut 1,000 jobs, WSJ/Reuters report
• Negative Sentiment: Analyst estimate trim — Erste Group slightly reduced its FY2027 EPS forecast (from $7.35 to $7.32), signaling modest downward revisions in sell‑side expectations; coupled with the layoffs and lower PTs, this contributes to negative near‑term sentiment.
• Negative Sentiment: Market reaction and uncertainty — Coverage notes that while layoffs can improve margins, investors are uneasy about timing, the impact of marketing cuts on future growth, and whether cost savings offset soft demand — a dynamic that helps explain today's downward price move. Barron's: Disney Is Planning Layoffs

Walt Disney Company Profile

The Walt Disney Company NYSE: DIS, commonly known as Disney, is a diversified global entertainment and media conglomerate headquartered in Burbank, California. Founded in 1923 by Walt and Roy O. Disney, the company grew from an animation studio into a multi‑national entertainment enterprise known for iconic intellectual property and family‑oriented storytelling. Disney's operations span film and television production, streaming services, theme parks and resorts, consumer products, and live entertainment.

On the content side, Disney produces and distributes feature films and television programming through a portfolio of studios and labels that includes Walt Disney Pictures, Pixar, Marvel Studios, Lucasfilm and 20th Century Studios, along with broadcast and cable networks such as ABC, FX and National Geographic.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.