The Walt Disney Company, #DIS [NYSE]
Services, Entertainments, USA

Financial performance of the company:
Index – DJIA, S&P 500;
Beta – 1.40;
Capitalization – 151.56 В;
Return on asset - 9.60;
Income - 8.38 B;
Average volume – 10.31 М;
P/E - 18.84;
ATR – 2.67.

Analytical review:

  • The company ranks the first on capitalization in the sector of “Entertainments” among the issuers traded in the American stock market;
  • Yesterday the company issued financial report for Q2 of the fiscal year 2016, which showed that company’s revenue was13 billion USD. Net profit amounted to 1.36 USD per share. The forecast was 13.2 billion USD and 1.40 USD per share respectively. Nevertheless, company’s results were better than the results for the same period a year ago. (Revenue was at the level of 12.5 billion USD and net profit - 1.23 USD per share;
  • At the press-conference company’s management stated financial performance of the company were lower than expected because of the decline in income from advertising and subscriptions to the cable network of Disney. Income fell by 2%. Other business segments of the company showed positive dynamics;
  • Operating profit of mass media sector rose by 9% to 2.3 billion USD. РThe rise in profit in the sector of theme parks rose by 4% to 3.9 billion USD;
  • Over 60% of the company’s shares belong to Institutional investors. Most part of the shares belongs to Vanguard Group (5.38%) and State Street Corporation (4.00%).

Summary:

  • Company’s report for Q2 of the fiscal year 2016 did not meet expectations of the market, and shares of the company fell by 4%. However, in the reporting period financial performance of the company has improved. Positive dynamics can be observed in the sectors of movie-making and theme parks. Most part of the company’s shares belongs to Institutional funds;
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of Walt Disney Company

Key levels:
Support levels: 101.50 USD and 99.85 USD
Resistance levels: 102.75 USD and 105.65 USD

Medium-term trading, Н1
At the moment the issuer is traded in the supply zone of 101.50-102.75 USD. If the price maintains this zone and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 104.00 USD, 105.50 USD and 106.50 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1

Short-term trading, М15
Yesterday the issuer closed with the gap down, which was caused by the fact that company’s report was below market expectations. . If the price breaks out and maintains the local resistance level of 102.50 USD, it is advisable to open long positions. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 103.30 USD, 104.00 USD and 104.50 USD with the use of trailing stop.

Short-term trading, М15
Short-term trading, М15




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