What Does Wall Street See for Walt Disney's Q3?

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Walt Disney (NYS: DIS) is expected to report Q3 earnings on Aug. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Walt Disney's revenues will improve 6.0% and EPS will grow 19.2%.

The average estimate for revenue is $11.31 billion. On the bottom line, the average EPS estimate is $0.93.


Revenue details
Last quarter, Walt Disney chalked up revenue of $9.63 billion. GAAP reported sales were 6.1% higher than the prior-year quarter's $9.08 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.58. GAAP EPS of $0.63 for Q2 were 29% higher than the prior-year quarter's $0.49 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 17.5%, 70 basis points better than the prior-year quarter. Operating margin was 17.5%, 70 basis points better than the prior-year quarter. Net margin was 11.9%, 150 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $42.80 billion. The average EPS estimate is $3.02.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 4,990 members rating the stock outperform, and 335 members rating it underperform. Among 1,432 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,379 give Walt Disney a green thumbs-up, and 53 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walt Disney is outperform, with an average price target of $46.30.

The article What Does Wall Street See for Walt Disney's Q3? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Walt Disney. Motley Fool newsletter services recommend Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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