Two major Dow Jones Industrial Average
Fresh off a record-shattering opening for its newest film, The Avengers, Disney will take the first swing tomorrow afternoon. According to early estimates, The Avengers generated $200.3 million in ticket sales, making it the highest-grossing domestic opening of all time. Investors will be hoping for a similar blockbuster during the earnings conference call on Tuesday morning.
As of now, analysts are expecting earnings of $0.55 per share on $9.56 billion in revenue for the second quarter. Don't let the numbers distract you from the key plot points, however. Disney's recent film, John Carter, was an expensive, abysmal failure. The studio expected to lose $80 million to $120 million due to a writedown related to the film. Investors will get a better picture of the effect on the bottom line and find out whether the historic debut for The Avengers can more than offset the John Carter debacle.
While recent films could provide context for the summer film season, investors also need to watch for theme park trends. Attendance and theme park spending has been strong thus far, perhaps due to the unseasonably warm weather throughout much of the country.
Cisco heads into Wednesday's earnings call with slightly less enthusiasm than Disney, primarily because the networking giant's shares fell 4.3% last week. This was the third-largest drop of the 30 Dow components, almost as severe as the 5.9% fall experienced by Caterpillar
Analysts are expecting $0.41 per share from Cisco, which would be up 10.8% from a year ago. On the top line, analysts are expecting revenue of $11.58 billion, reflecting 6.6% growth from the same quarter last year. Cisco continues to pursue growth through tack-on acquisitions, but also sees opportunities in the new era of cloud computing.
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Isaac Pino has no positions in the stocks mentioned above. The Motley Fool owns shares of Bank of America, Walt Disney, and Cisco Systems. Motley Fool newsletter services have recommended buying shares of Walt Disney. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.