JPMorgan’s Alexia Quadrani and team explain why they’re bullish on Walt Disney (DIS) heading into earnings:
Zootopia Associated Press
We are raising our estimates for Disney ahead of FQ2 earnings, primarily driven by the outperformance of Zootopia, which has generated $296m in domestic box office receipts and $853m globally to date and we expect has further positive implications for Consumer Products in particular in the future. In addition, we believe early widespread positive reviews for The Jungle Book, opening in theaters this weekend, has further positive implications for the studio and therefore modestly raise our FQ3 estimates as well. At the other divisions, we believe trends remained steady with a potential slight positive at Cable from the inclusion of Disney networks in Sonys Playstation Vue offering in early March as well as the strong scatter market YTD. We believe Parks trends remained healthy domestically as the company continues to look for ways to leverage pricing structures (dynamic pricing, early entry passes) to both increase profitability as well as limit overcrowding. At international, we expect incremental details for Shanghai Disneyland in the coming months ahead of the parks opening in mid-June. Finally, we believe Consumer Products is likely to continue to benefit from strong Star Wars sales as well as new properties such as Zootopia and The Jungle Book later in the year. Our FQ2 EPS increases to $1.42 from $1.40 prior, while our F2016E EPS increases to $5.80 from $5.76. With an ongoing impressive success rate at the Studio, better subscriber trends, and a particularly positive outlook at the Parks, we reiterate our Overweight rating and $118 year-end price target for Disney as one of our top picks in Media.
investment bonds: Euro/Yen(EJ)
Advisors’ Opinion:
- [By Belinda Cao]
E-House China Holdings Ltd. (EJ), a real estate brokerage, gained 9.2 percent to $9.70, extending it advance to a third week. Its American depositary receipts retreated 3.1 percent Sept. 20 from the highest level since May 2011.
investment bonds: Xerox Corporation(XRX)
Advisors’ Opinion:
- [By Chris Lange]
The stock posting the largest daily percentage gain in the S&P 500 ahead of the close Monday was Xerox Corp. (NYSE: XRX) which rose 3.8% to $30.56. The stocks 52-week range is $22.90 to $30.76. Volume was 3.8 million compared to its average volume of 2.3 million.
- [By Paul Ausick]
Xerox Corp. (NYSE: XRX) dropped about 23% on Tuesday to post a new 52-week low of $6.46 after closing at $8.73 on Friday. The dip was the result of the company’s completed separation into two firms this morning. After the early drop shares had gained around 17% by late afternoon, probably on the strength of a cash payment of $1.8 billion.
investment bonds: Express-1 Expedited Solutions Inc.(XPO)
Advisors’ Opinion:
- [By WWW.THESTREET.COM]
In the Lightning Round, Cramer was bullish on GlaxoSmithKline (GSK) , Chubb (CB) , XPO Logistics (XPO) , FedEx (FDX) and Nordson (NDSN) .
Cramer was bearish on Prudential (PRU) , Advanced Semiconductor Engineering (ASX) and ZTO Express (ZTO) .
- [By WWW.THESTREET.COM]
With a trailing 12-month price-to-earnings ratio of 28.79, FedEx’s valuation is in line with UPS (27.52) and far cheaper than XPO Logistics (XPO) (90.25).
investment bonds: Triple-S Management Corporation(GTS)
Advisors’ Opinion:
- [By Peter Graham]
Small cap Triple-S Management Corp (NYSE: GTS) is an independent licensee of the Blue Cross Blue Shield Association. It is one of the leading players in the managed care industry in Puerto Rico. Triple-S Management has the exclusive right to use the Blue Cross Blue Shield name and mark throughout Puerto Rico, the U.S. Virgin Islands, and Costa Rica. With more than 50 years of experience in the industry, Triple-S Management offers a broad portfolio of managed care and related products in the Commercial, Medicare Advantage, and Medicaid markets under the Blue Cross Blue Shield marks. It also provides non-Blue Cross Blue Shield branded life and property and casualty insurance in Puerto Rico.
