Disney, Papa John’s earnings — What to know in markets Tuesday

Heidi Chung
·Reporter
Updated
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Media behemoth Disney (DIS) and pizza chain Papa John’s (PIZZA) are both scheduled to release quarterly results after the market close Tuesday.

Disney’s fiscal third-quarter earnings results will be closely watched by investors. As we head toward the end of summer, investors will be expecting more updates to Disney’s planned streaming service Disney+, which the company anticipates to launch in the fall.

The media giant’s dominance at the box office has propelled the stock to all-time highs this year. Shares have soared 27% in 2019 as of Monday’s close and have outperformed both the broader market and its peers. The S&P 500 (^GSPC) has risen 14%, while Viacom (VIAB) is up 15%, Netflix (NFLX) jumped 14%, Discovery (DISCA) rose 17% and Amazon (AMZN) surged 17%.

Analysts polled by Bloomberg expect Disney to report adjusted earnings of $1.71 per share on $21.44 billion in revenue. The options market is implying a 3.3% one-day move in either direction following its announcement.

Meanwhile, pizza giant Papa John’s second-quarter results follow stronger-than-expected first quarter results in early May. Papa John’s is in the midst of a serious turnaround plan after founder and former CEO John Schnatter drove the pizza brand’s image into the ground after spewing multiple controversial comments. Schnatter resigned as CEO in December 2017, then resigned as chairman July 2018 and officially exited the board in March 2019.

Since then, Papa John’s has been furiously trying to boost sales and regain lost customers in a fiercely competitive fast-food environment. Beloved NBA star Shaquille O’Neal was appointed to Papa John’s board at the end of March, and since then, management has expressed its devotion to rebuilding a damaged image and brand.

Furthermore, investors will be focused on commentary about third-party delivery services and their increased industry disruption. Domino’s Pizza’s (DPZ) management said that third-party aggregators had a negative impact on second-quarter sales and doesn’t see the threat easing in the future. Companies such as DoorDash, Uber Eats (UBER), Postmates and Grubhub (GRUB) have been aggressively expanding operations, and as a result, have been threatening companies with their own delivery services such as Papa John’s and Domino’s Pizza.

Papa John’s is expected to report adjusted earnings of 30 cents per share on $394.5 million in revenue, according to data compiled by Bloomberg.

Shares of Papa John’s have risen 8% this year, and the options market is implying a 6% one-day move in either direction when the company reports after the bell Tuesday.

Other notable earnings reports scheduled for Tuesday include Blue Apron (APRN), Discovery, Inc (DISCA), and Regeneron (REGN) before market open; Devon Energy (DVN), Hertz (HTZ), Match Group (MTCH), Weight Watchers (WW), and Wynn Resorts (WYNN) after market close.

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Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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