Walt Disney Stock Brushes Off Pre-Earnings Bear Note

Disney will report fiscal fourth-quarter earnings and revenue on Wednesday

Walt Disney Co (NYSE:DIS) stock is brushing off a pre-earnings bear note, with Citigroup cutting its price target by $10 to $110. Right out of the gate, DIS is marginally higher, last seen up 0.5% $85.15.The blue-chip entertainment giant is slated to report quarterly results after the close Wednesday evening.

Walt Disney will release fiscal fourth-quarter figures. In regards to DIS’ post-earnings reactions over the last two years, the shares finished five of the last eight next-day sessions lower, though it popped 4.9% after its third-quarter report in August. The equity averaged a move of 5.5% over the past two years, regardless of direction, and the options pits are pricing in a slightly larger swing of 7.3% this time around.

Revisiting analyst sentiment, the majority in coverage are still bullish on Walt Disney stock, with 19 of 26 rating it a “buy” or better. Plus, the 12-month consensus target price of $104.28 is a 22.6% premium to current levels, which implies downgrades and/or price-target cuts could be overdue. 

On the charts, DIS is still struggling with a ceiling at its $86 level. Over the last nine months, the stock has shed 23.2%, and it’s saddled with a marginal year-to-date deficit as well. 

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