This analysis focuses on the company’s stock price reaction during the last 12 earnings announcements. Moreover, also reporting the reactions only to the earnings announcement in which the company has reported EPS higher than expected or in which it has reported EPS lower than expected.
If an event has occurred often does not mean that repetition is guaranteed in the future.
This analysis could be useful for the following reasons:
- Understand if it is a company that often beats analysts’ expectations and see how the market reacts accordingly.
- Understanding if when the company reacts with a positive opening then closes the day at an even higher price or if it reverses the direction and closes at a lower price (and viceversa).
- Have an idea of how much the stock price goes up on average when it reacts positively and how much the stock price goes down when it reacts negatively.
- Identify those stocks with the best risk-return ratio, ie stocks that have average positive reactions 2 or 3 times greater than average negative reactions.
- If you are a day trader you may find interesting those stocks that show a historically high volatility during these days.
- Know how the price of the stock reacts within 5 or 20 days after the publication of the quarterly report.
The Walt Disney Company (DIS)
Summary
- DIS reported higher EPS than analyst expectations in 66,67% of cases.
- Opening:
- DIS reacted by opening the day in a positive way in 66,67% of cases, with an average performance at the opening of -0,33%
- DIS , when it beat analysts’ expectations, reacted by opening the day in a positive way in 75,00% of cases
- Closing:
- DIS reacted by closing the day in negative in 75,00% of cases, with an average performance of 2,21% on the days when reacted positively and -2,31% on the days when reacted negatively.
- DIS , when it beat analysts’ expectations, reacted by closing the day in negative territory in 87,50% of cases, with an average performance of 1,72% on the days when reacted positively and -1,88% on the days when reacted negatively.
- During the day:
- DIS reacted by closing the day at a price lower than the opening price in 75,00% of cases, with an average daily movement (from open to close) of -0,64%
- On days when DIS reacts positively at the opening, in 87,50% of cases it closes the day at an even lower price.
- Average Gain: +2,21%
- Average Loss: -2,31%
- Average Volatility: 2,51%
- Earnings date: November 7, 2019 (After-Market-Close)
Full description
The Walt Disney Company, commonly known as Disney, is an American diversified multinational mass media and entertainment conglomerate headquartered at the Walt Disney Studios complex in Burbank, California.
In the last 12 earnings announcements DIS reported EPS higher than expected on 8 occasions out of 12 ( 66,67% ).
DIS stock price reacted positively (by opening up) to these earnings announcements 8 times out of 12 ( 66,67% ) opening with an average variation of -0,33% .
DIS stock price reacted positively (by closing up) to these earnings announcements 3 times out of 12 ( 25,00% ) closing the day with an average gain of 2,21% on days when reacted positively and closing the day with an average loss of -2,31% on days when reacted negatively.
On days when DIS reacts positively at the opening, in 1 occasions out of 8 ( 12,50% ) it closes the day at an even higher price with an average gain during the day (from open to close) of 0,51% , while the remaining 7 occasions ( 87,50% ) closes at a lower price.
On days when DIS reacts negatively at the opening, in 2 occasions out of 4 ( 50,00% ) it closes the day at an even lower price with an average loss during the day (from open to close) of -0,85% , while the remaining 2 occasions ( 50,00% ) closes at a higher price.
During the last 12 earnings announcements DIS reacted with an average volatility of 2,51% throughout the day.
Regarding the performance of the stock in the next 5 and 20 days, DIS had an average variation of -0,99% in the following 5 days and -0,65% in the following 20 days.
Do you want to stay updated on all the analysis published?
This analysis focused on the moment before the publication of the quarterly report, if you are also interested in the analysis after the publication of the quarterly report I am waiting for you here. If you want to know the analysts’ expectations and other useful information on the companies that release the quarterly report within the week (and the last day to be entitled to the dividend) click here
To learn about all the types of analysis you find on BullDude.com click here
Sources & Additional info
*Current and estimated EPS data from zacks.com
*Company information from wikipedia.com
Legenda
The results are divided into 3 columns. In the first column the reactions to all 12 earnings announce are considered. In the second column only the reactions to the earnings announcement in which the company reported EPS higher than expected. In the third column only the reactions to the earnings announcement in which the company reported EPS lower than expected.
* EPS Surprise
– “Positive Op.”: Indicates the percentage of times the company has reported EPS higher than analysts’ expectations.
* Reaction (Open)
– “Positive Op.”: Indicates the percentage of times the stock price has reacted positively to the earnings report, by opening at a higher price than the closing of the previous day.
– “Avg. Ch. (%)”: Indicates the average performance of the stock price at the opening.
* Reaction (Close)
– “Positive Op.”: Indicates the percentage of times the stock price has reacted positively to the earnings report, by closing at a higher price than the closing of the previous day.
– “Avg. Ch. + (%)”: Indicates the average performance on days when the stock price reacted positively.
– “Avg. Ch. – (%)”: Indicates the average performance on days when the stock price reacted negatively.
* Reaction (From Open to Close)
– “Positive Op.”: Indicates the percentage of times the stock price has reacted with a positive performance starting from the opening price up to the closing price.
– “Avg. Ch. (%)”: Indicates how the stock price is moving on average starting from the opening price up to the closing price of the same day.
* Reaction (5 Days After)
– “Positive Op.”: Indicates the number of times the company’s stock price reached a positive performance after 5 days the earnings announcement.
– “Avg. Ch.”: Indicates the 5-day average price performance of the stock from the day the earnings were announced.
* Reaction (20 Days After)
– “Positive Op.”: Indicates the number of times the company’s stock price reached a positive performance after 20 days the earnings announcement.
– “Avg. Ch.”: Indicates the average 20-day performance of the stock price starting from the day the earnings were announced.
* Reaction (Volatility)
– “Avg. Ch. (%)”: Indicates the amplitude (in %) of the fluctuations in the price of the stock in reaction to the earnings report (max – min).
If you liked this analysis, share it on Twitter or Facebook with the 2 buttons at the top or bottom of the page!!!
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.
