Disney Q4: Profit beats Wall Street estimates; looks to cut extra $2 billion in cost.

FUNDAMENTAL OVERVIEW

Walt Disney’s fourth-quarter earnings surpassed Wall Street analysts’ expectations, driven by strong attendance at its Shanghai and Hong Kong theme parks. Disney shares rose 3% in after-hours trading to $87.14 on Wednesday, following the company’s better-than-expected results and announcement of an additional $2 billion in cost cuts.

Walt Disney’s adjusted earnings per share for the fourth quarter of fiscal 2023, which ended September 30, were 82 cents, beating analysts’ average forecast of 70 cents, according to data from the London Stock Exchange Group (LSEG). Revenue for the quarter was $21.2 billion, largely in line with consensus estimates, according to Reuters.

Disney is on track to save $7.5 billion per year by carefully controlling its spending.

In the meantime, the company attracted 7 million new core Disney+ members from the prior quarter, increasing its overall user base—including Hot Star—to 150.2 million. Additionally, the streaming company reduced its losses from the previous year.

The company is still projecting that in the fiscal fourth quarter of 2024, its integrated streaming businesses will turn a profit.

DISNEY TECHNICAL ANALYSIS DAILY CHART:

Technical Overview

Disney is currently trading within an up channel.

Disney is positioned below all Moving Averages (SMA).

The Relative Strength Index (RSI) is in the buying zone, while the Stochastic oscillator suggests a positive trend.

Immediate Resistance level: 88.42

Immediate support level: 86.28

HOW TO TRADE DISNEY

Following a steep decline, Disney’s price found support and then turned straight up. Disney has formed a double-bottom pattern and has finally broken through a critical resistance zone after repeatedly testing resistance. The stock is currently moving towards its next resistance; if this area is breached, more upside is expected.

TRADE SUGGESTION- STOP BUY– 89.05, TAKE PROFIT AT- 92.44, SL AT- 86.97.