The Walt Disney Company: How To Trade With Crowd Indicator?

The Walt Disney Company was expected to report its third-quarter earnings after the market close on Tuesday, August 9. We had published the question a few days before earnings report was released:

The Walt Disney Company (DIS) will report its Q3 earnings on Tuesday, August 9 after the market closes. Wall Street is expecting earnings per share (EPS) of $1.61. Will Disney report EPS above Wall Street Consensus?

Cindicator users thought that the probability for Disney to report better-than-expected earnings was 70 percent. Therefore, we had bought 1050 shares of The Walt Disney Company at $96.56 before the earnings report was revealed on Tuesday, August 9.

Although crowd indicator was right and CA-based entertainment giant reported adjusted earnings of $1.62 per share, beating analysts’ estimated $1.61 per share, the stock dropped in post-market trading. We sold DIS at $95.58 for $1029 loss (-0.75%). It is remarkable, that the shares surged above $99 next day after the report was published.

Happy trading,

Cindicator team

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