Giant media company Walt Disney (NYSE:DIS) is due to report Q1 2016 earnings on Feb. 9^th 2016 after market close. Wall Street expects Disney to report revenue of $14.75B, good for 10.1% Y/Y growth with diluted EPS of $1.45, good for 14.2% Y/Y growth. Walt Disney did not provide specific guidance for Q1 2016 but only provided highlights of how it expects costs for its various segments to trend during 2016. Meanwhile, it’s worth noting that Walt Disney has exceeded consensus earnings estimates in the last four consecutive quarters.

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Walt Disney Earnings Surprise History

Source: NASDAQ

Battleground stock

There is an earnings whisper that Walt Disney will surpass Wall Street expectations by reporting an EPS of $1.48. But it’s doubtful whether this will be enough to give much forward momentum to Disney stock. Walt Disney stock has become a battleground stock for investors, with the bulls counting on the company’s flamboyant films and theme parks to take the stock higher while the bears carp about weaknesses in the company’s cable networks, particularly ESPN, due to cord-cutting. Disney stock has consistently featured among the five most shorted stocks on the Dow Jones. The stock is down 11.4% YTD partly due to broader market weakness and partly due to the said cable weakness. The stock has been selling off heading into its earnings call, an indication of the general pessimism hanging around the company.

Walt Disney Stock YTD Returns