Please review the daily chart for Disney ($DIS) in anticipation of the Q4 earnings report scheduled for Tuesday morning (November 17). The stock closed on Friday at $118.97, reaching an intraday high of $119.47, positioning it less than $2 below its 52-week high of $120.80.
Disney has exceeded earnings per share (EPS) estimates for eight consecutive quarters. In the previous quarter, operating income for the Parks segment increased by nearly 20%, and free cash flow rose by 62.6% to $3.1 billion. For the earnings call scheduled for Tuesday at 8:30 AM ET, analysts anticipate EPS of $1.68 (a 51.4% year-over-year increase) on revenue of $25.19 billion (a 12.1% year-over-year increase) and segment operating income of $4.9 billion.
The primary driver for a potential breakout above $120.80 is the FY2027 outlook: management is targeting double-digit EPS growth (to approximately $7.47) and at least $9 billion in share repurchases. While some analysts argue that a 24x P/E ratio is higher than that of Netflix or Comcast, if Mr. Iger announces a formal buyback commitment of $9 billion or more, along with strong margins in the streaming and Parks segments, the $120.80 resistance level is likely to be breached.
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