Erste Group Bank Forecasts Higher Earnings for Walt Disney

Key Points

• Erste Group Bank raised Disney’s FY2027 EPS forecast slightly to $7.49 from $7.48, above the broader consensus estimate of $6.91.
• Disney’s latest quarterly results exceeded expectations, with EPS of $2.06 versus the $1.86 consensus. Revenue rose 6.8% year over year to $25.25 billion, though it fell short of estimates.
• Analyst sentiment remains favorable, with Disney carrying a “Moderate Buy” consensus rating and a $127.61 average price target, compared with its recent trading level near $102.61.

The Walt Disney Company (NYSE:DIS - Free Report) - Investment analysts at Erste Group Bank lifted their FY2027 earnings per share (EPS) estimates for shares of Walt Disney in a report released on Friday, September 18th. Erste Group Bank analyst S. Lingnau now forecasts that the entertainment giant will earn $7.49 per share for the year, up from their previous forecast of $7.48. The consensus estimate for Walt Disney's current full-year earnings is $6.91 per share.

Walt Disney (NYSE:DIS - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The entertainment giant reported $2.06 earnings per share for the quarter, topping analysts' consensus estimates of $1.86 by $0.20. Walt Disney had a return on equity of 9.90% and a net margin of 8.70%.The company had revenue of $25.25 billion during the quarter, compared to analysts' expectations of $25.39 billion. During the same period last year, the firm earned $1.61 EPS. The firm's revenue for the quarter was up 6.8% on a year-over-year basis. Walt Disney has set its FY 2026 guidance at 6.642-6.642 EPS.

A number of other equities analysts have also weighed in on DIS. Rosenblatt Securities reiterated a "buy" rating and issued a $126.00 price objective on shares of Walt Disney in a research report on Thursday, August 6th. Wall Street Zen upgraded shares of Walt Disney from a "hold" rating to a "buy" rating in a research note on Saturday. Barclays lifted their target price on shares of Walt Disney from $110.00 to $115.00 and gave the company an "overweight" rating in a report on Thursday, August 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Walt Disney in a research note on Tuesday, September 8th. Finally, Needham & Company LLC reissued a "buy" rating and set a $125.00 price target on shares of Walt Disney in a report on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $127.61.

Walt Disney Trading Down 0.1%

NYSE:DIS opened at $102.61 on Monday. Walt Disney has a 12-month low of $92.18 and a 12-month high of $117.09. The company has a current ratio of 0.71, a quick ratio of 0.65 and a debt-to-equity ratio of 0.32. The stock's 50 day simple moving average is $102.92 and its 200-day simple moving average is $101.57. The firm has a market cap of $177.18 billion, a P/E ratio of 21.16, a PEG ratio of 1.28 and a beta of 1.41.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Franklin Resources Inc. lifted its stake in shares of Walt Disney by 29.2% during the 4th quarter. Franklin Resources Inc. now owns 8,522,860 shares of the entertainment giant's stock worth $969,646,000 after purchasing an additional 1,924,200 shares during the period. Aviva PLC boosted its holdings in shares of Walt Disney by 5.5% during the fourth quarter. Aviva PLC now owns 1,516,177 shares of the entertainment giant's stock worth $172,495,000 after purchasing an additional 78,914 shares during the last quarter. Windsor Advisory Group LLC grew its position in shares of Walt Disney by 297.9% in the first quarter. Windsor Advisory Group LLC now owns 10,082 shares of the entertainment giant's stock valued at $972,000 after purchasing an additional 7,548 shares during the period. Cullen Capital Management LLC purchased a new stake in shares of Walt Disney in the second quarter valued at $4,092,000. Finally, Weiss Asset Management LP acquired a new position in Walt Disney in the first quarter valued at $694,000. 65.71% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other news, EVP Paul M. Roeder sold 3,596 shares of the stock in a transaction dated Wednesday, August 19th. The shares were sold at an average price of $106.32, for a total value of $382,326.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Brent Woodford sold 3,618 shares of the firm's stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $107.13, for a total transaction of $387,596.34. Following the completion of the sale, the executive vice president owned 62,328 shares of the company's stock, valued at $6,677,198.64. This trade represents a 5.49% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 14,452 shares of company stock valued at $1,532,157. 0.17% of the stock is owned by corporate insiders.

Key Stories Impacting Walt Disney

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

• Positive Sentiment: Disney appointed Karandeep Anand, the former CEO of Character.AI, as its first chief technology officer. Reporting directly to CEO Josh D’Amaro, Anand will oversee technology and AI initiatives beginning October 2. The hire signals an effort to improve personalization, digital products, infrastructure and the use of AI across Disney’s businesses. Reuters article on Disney’s first chief technology officer
• Positive Sentiment: Adam Smith, previously a Disney streaming product and technology executive, was named chairman of Direct-to-Consumer. His mandate includes Disney+ and Hulu strategy, development and operations, potentially helping the company sharpen streaming execution and subscriber monetization. Disney announcement on Adam Smith
• Positive Sentiment: An analyst comparison highlighted Disney’s strength across parks, streaming and the box office, while another report said Disney’s profitable streaming business and content slate compare favorably with Netflix. These points support the longer-term growth narrative, although they are not new financial guidance. Motley Fool comparison of Comcast and Disney
• Neutral Sentiment: Disney Imagineering filed a new construction permit related to the Polynesian Island Tower. The project could support future parks and resorts revenue, but the filing provides no timing, cost or return details. Polynesian Island Tower construction permit report
• Negative Sentiment: An unusual aspect of the CTO appointment is that Character.AI previously received a Disney cease-and-desist letter over alleged use of Disney characters. While Anand’s AI expertise may be valuable, the history introduces intellectual-property and reputational questions for investors. TechCrunch report on Disney’s CTO appointment
• Negative Sentiment: The back-to-back leadership changes may create near-term uncertainty as Disney reorganizes streaming and technology responsibilities. Investors will likely look for evidence that the new structure improves subscriber growth, advertising and profitability rather than adding bureaucracy.
• Negative Sentiment: Disney is also contesting an FCC review of eight ABC station licenses, adding a regulatory and political overhang to the company’s traditional television operations. Reuters report on Disney’s FCC case

About Walt Disney

The Walt Disney Company NYSE: DIS is a global entertainment and media company that develops, produces and distributes content across film, television and streaming platforms. Its portfolio includes Disney, Pixar, Marvel, Star Wars, National Geographic and other brands, with content distributed through theatrical releases, television networks and direct-to-consumer services such as Disney+, Hulu and ESPN's streaming offerings.

Disney also operates sports media businesses, including ESPN, and owns and manages theme parks, resorts, cruise lines and other location-based entertainment experiences.

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