Jim Cramer on Disney “It Didn’t Raise its Earnings Forecast Enough, the Stock Got Hit”

The Walt Disney Company (NYSE:DIS) is one of the stocks Jim Cramer recently shed light on. Cramer highlighted that the company “reported a nice beat and raise,” quarter and commented:

“But then there’s the other side of the trade, stocks that just go begging because there’s no narrative that can attract attention. Take Disney. The company made a major deal with the NFL last night on the eve of earnings that were usually positive, but no one cared. Disney reported a nice beat and raise, one that should have sent the stock flying, but no. Because it didn’t raise its earnings forecast enough, the stock got hit. Disney beat the earnings estimates by 14 cents, but it didn’t pass all that beat on to the full year guidance. That’s deadly, suicidal even. It’s an implicit cut to the forecast. You have to raise your full-year earnings guidance at least as much as you beat the quarter, or your stock is just going to get clubbed. It didn’t need to be that way, but management played it safe. Safety took a vacation.”

Stock market reports printed on a sheet of paper. Photo by RDNE Stock Project on Pexels

The Walt Disney Company (NYSE:DIS) creates and distributes film, TV, and streaming content under major brands like Disney, Marvel, Pixar, and ESPN. Moreover, the company operates theme parks, resorts, cruises, and merchandise businesses.

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Disclosure: None. This article is originally published at Insider Monkey.