A Closer Look at Disney’s Financials
Walt Disney (DIS) is carrying a total debt of $21.6 billion. But can it easily pay the interest?
Walt Disney (DIS) reported its fiscal 2Q17 (ended March 31) results on May 9, and the report was a mixed bag of fortunes.
Analysts’ estimate of $60.7 per share for Qualcomm (QCOM) implies an 8.2% increase from its current level. Analysts are turning bearish on the stock.
On May 15, 2017, DISH Network (DISH) was trading 0.8% below its 100-day moving average. Let’s compare this value with those of its peers.
DISH expects its pay-TV business to continue to fall given the rise in OTT (over-the-top) services. The company is looking at transitioning into a connectivity company.
On May 1, 2017, Street Insider reported that Pivotal Research had downgraded DISH Network (DISH) from a “buy” to a “hold” and changed the stock’s target price from $86.00 to $70.00.
On May 15, 2017, DISH Network (DISH) stock closed at $61.51. It’s risen 6.2% YTD (year-to-date), and it’s fallen 4.5% since its 1Q17 earnings were announced on May 1, 2017.
On May 12, 2017, citing an unnamed source, Bloomberg reported that Sprint (S) is in merger talks with T-Mobile (TMUS).
Considering DISH Network’s (DISH) falling pay-TV subscriber base, it’s important to note that the company has maintained steady profits.
DISH Network’s (DISH) pay-TV business and its OTT (over-the-top) service, Sling TV, are facing increasing competition from other OTT services.
DISH stated that as a distributor, it doesn’t have the option to distribute content from the top three television networks of a media company.
According to a Cord Cutters News report from April 2017 citing comScore data, DISH Network’s (DISH) Sling TV subscribers watch Sling TV for an average of 47 hours per month.
DISH Network’s (DISH) falling pay-TV subscriber base is also affecting its ARPU (average revenue per user) and subscriber acquisition costs.
The popularity of OTT (over-the-top) services has started threatening the businesses of pay-TV operators such as DISH Network (DISH).
Of the 46 analysts covering Facebook (FB), a whopping 42 recommend a “buy,” one recommends a “sell,” and three recommend a “hold.”
On May 8, 2017, investment bank Drexel Hamilton raised its target price for Apple (AAPL) from $185 to $202.
In the first week of May 2017, FireEye (FEYE) saw the largest gain in the tech sector, rising 18.7% on the back of its 1Q17 earnings. FireEye stock has returned 24.5% year-to-date.
The Walt Disney Company (DIS) announced its fiscal 2Q17 results on May 9. The company’s stock price closed at $109.58 on May 11, 2017.
In this part of the series, we’ll look at The Walt Disney Company’s (DIS) technical indicators and compare them to other media companies.
On May 11, 2017, The Walt Disney Company (DIS) was trading at $109.58. That’s 3.0% below its 20-day moving average of $113.