Walt Disney (DIS) Big Revenue Upside Should Translate Into A Slight Beat - Piper Jaffray

Piper Jaffray analyst, Stan Meyers, is $0.20 ahead of consensus at $6.03 going into the Disney (NYSE: DIS) report and remains confident that the strength of Disney's film slate will drive outperformance. The firm reiterated an Outperform rating and $120 price target.

Disney's solid film lineup should not only drive the top line at an accelerated pace, but also help expand margins as the company further gains leverage across the ecosystem. There will be a number of negative items however:

1) The shift of the Force Awakens' EST sales to April 1 from March 15

2) ABC's weakerthan-expected ratings in the quarter (down roughly 15% in the quarter) and network's cancellation of Of Kings and Prophets

3) $75M write-down related to the Finest Hours film at the studio.

As a result he is reducing FQ2 EPS estimate to $1.40 from $1.45, though remain ahead of the consensus estimate of $1.39 and still expect a slight beat.

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $104.36 yesterday.

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