Walt Disney (DIS) Tanks While Electronic Arts (EA) Surges As Latest Earnings Reports Trigger Mixed Reactions

Disappointing earnings have pushed US stocks lower this morning, but the decline did not last long. The EIA’s weekly inventory has shown a reduction in crude stocks, pushing oil prices higher, which in turn gave a boost to the stock market. In this article we’ll take a look at how investors reacted to the earnings reports of several noteworthy companies: Walt Disney Co (NYSE:DIS), Wendys Co (NASDAQ:WEN), Macy’s, Inc. (NYSE:M), Blue Buffalo Pet Products Inc (NASDAQ:BUFF) and Electronic Arts Inc. (NASDAQ:EA).

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Walt Disney Co (NYSE:DIS) shares are tanking today after the company reported fiscal second-quarter results that missed expectations. Despite a string of huge box office successes, Disney saw weakening growth in its media networks and theme park businesses. As it reported earnings of $1.36 per share, the company missed analysts’ projections for the first time in five years, with the consensus being at $1.40 per share. Revenues of $12.97 billion also fell short of expectations, as market participants were looking for $13.19 billion. Media networks’ sales came in at $5.79 billion, pretty much flat year-over-year, while revenues from the parks and resorts business stood at $3.93 billion, below estimates of $4.03 billion. The film unit was the star player, as sales grew 22% year over year to $2.06 billion. Billionaire Ken Fisher is a fan of this stock, with his fund, Fisher Asset Management, having reported a 1% increase in its holding to 8.64 million shares held at the end of the first quarter. The value of this position was estimates at more than $852 million.

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Shares of burger chain Wendys Co (NASDAQ:WEN) are down today, despite an upbeat earnings report. The numbers released this morning easily beat analysts estimates, with revenues coming in at $378.8 million and earnings at $0.11 per share when adjusted for one time costs. The consensus among analysts was $350.8 million in revenues and a profit of $0.06 per share. It seems that market participants paid more attention to growth figures where Wendys’ weakness currently lies. Compared to the same period of last year, revenues fell by 16%, while net income dropped by roughly 7.5%. As a result, the stock plunged this morning and is currently down by 6.8% from yesterday’s closing price of $11.18. Murray Stahl‘s Horizon Asset Management continued to reduce its stake in Wendys Co (NASDAQ:WEN), with the latest 13F filing showing a 13% decrease in its holding to 13.5 million shares worth $147.3 million at the end of March.

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On the next page we’ll take a look at the numbers released by the remaining three companies.