Walt Disney (DIS) is likely to maintain its earnings guidance for the year despite the current macro uncertainty that is weighing on some of the company's business lines, UBS said in a note emailed Tuesday.
The firm said it expects "solid" fiscal Q2 numbers, with revenue rising 4.2% year over year to $23 billion, and earnings per share rising 1.6% based on an earnings before interest and taxes expectation of $4.1 billion.
"This would bring 1H EPS results to 23% growth vs. annual guidance for [high single digit] growth (UBSe $5.51, or +9.5%)," the firm said in the note.
However, the firm slashed its fiscal 2026 earnings estimate to $6.06 per share from $6.39 previously, and fiscal 2027 estimate to $7.29 from the prior $7.80 to reflect risk to Disney's advertising and parks businesses.
The firm reiterated its buy rating on the stock and slashed its price target by $25 to $105.
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