Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.
The Walt Disney Company reported its 4th quarter earnings of this fiscal year today. Concluding the overall revenue, the company saw an increase of 5% year-on-year (YoY). The diluted earnings per share (EPS) increased to $1.14 from $0.09.
Quarter 4 Earnings Release
Disney proceeds to deal with its expense base and has expanded its annualized efficiency focus to $7.5 Billion versus $5.5 Billion beforehand. It expects to grow its free cash flow significantly in fiscal 2024 approaching levels last seen pre-pandemic. This continued robust free cash flow growth, alongside Disney’s strong balance sheet will position the company upwards. It can address its investment and shareholder goals for the year and going forward.
Moreover, one area of guaranteed success has been its streaming service. The Disney+ platform added nearly 7 Million core subscribers in the fourth quarter alone, driven by the release of highly anticipated titles.
In addition, original series like Ahsoka, Loki, and the Korean series Moving have proven popular with viewers. Looking at the future, the company is optimistic about the potential for its combined streaming businesses to become profitable by Q4 of FY24.
The Cost Reduction Plans
Robert A. Iger, Chief Executive Officer said that they have a solid foundation of creative excellence and innovation built over the past century. This has only been reinforced by the important restructuring and cost-efficiency work they’ve done this year. Moreover, they’re on track to achieve roughly $7.5 billion in cost reductions. Combined with their portfolio of valuable businesses, brands, and assets and the way the company manages them together – Disney has a strong hand that differentiates it from others in the industry.
Technical Analysis and Prediction of DIS Stock Price
As of the time of this writing, the current trading level for DIS stock price is $84.5. The bullish investors aim to confirm the breaking of this uptrend line by achieving a lower high below it. However, they are not giving up yet, as they have reclaimed the support level of $81.65.
The 50-day EMA and the 150-day EMA are currently at $83.41 and $87.93, respectively, before reaching the immediate resistance of $91.34. The DIS stock price prediction is bearish until it confirms the breaking of the trendline. If they made a higher low above the trendline, the price could shoot up till its resistance level.
Conclusion
The Walt Disney Co. (NYSE: DIS) stock has been on a bearish trend. Although the company has reported positive financial results for the 4th quarter of this fiscal year. As of now, the DIS stock price is in a downtrend, but unless a significant high breaks the immediate support level, the prediction remains bearish.
Technical Levels
Support Levels: $81.6 and $76.7
Resistance Levels: $91.3 and $97.1
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets or stocks comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2023/11/10/dis-stock-price-q4-results-here-is-there-any-hope-for-bulls/