Market Insights

Both Walt Disney Company and Fox Corporation are set to report their earnings for the latest quarter on August 10, 2022.

How have these stocks and their indices performed so far?

Shares of Disney have dropped around 26% over the past six months due to several factors, including surging inflation levels in the US. This led to several analysts cutting their price targets on the stock just before the release of the quarterly earnings report. Analysts from Goldman Sachs, Trust Securities, Wells Fargo and Keybanc are some that have recently lowered their price targets on Disney.

Fox’s stock, on the other hand, dipped around 17% in the last six months, which is much less than Disney’s plunge in the same period. There hasn’t been much action by analysts in recent times on Fox, except for Wolfe Research downgrading Fox from Outperform to Peer Perform back in June.

The S&P500, meanwhile, has declined around 9% over the past six months, with the Dow Jones falling just 7% in the same period.

What does Wall Street expect from these companies?

Fox is expected to report a year-over-year rise in earnings, with increased revenues for the quarter ended June 2022. The TV broadcasting company is predicted to report quarterly earnings of $0.81 per share on revenues of $3.05 billion.

Analysts, meanwhile, expect Disney to report quarterly earnings of $1 per share, down from $1.06 per share in the previous quarter. The company is also forecasted to report revenue of $20.6 billion for the quarter. Some analysts have reduced Disney+ subscriber projections for the next quarter to account for the loss of streaming rights of the IPL, a major cricket league in India.

How to trade earnings reports?

If the earnings reports miss or beat expectations, Disney and Fox could see stock price moves. To gain exposure to both stocks with a single trade, traders can consider index trading. Indices measure the price performance of a group of stocks from specific exchange or market sector. For instance, the S&P 500, which includes both Disney and Fox, tracks the performance of 500 large cap firms in the US.

You can trade indices without taking ownership of any stocks using CFDs (contracts for difference). This also allows you to trade the top stocks with much lower capital needs.

Are you ready to make the most of the upcoming earnings reports through index trading?

Start your trading journey at Vantage.