Reporting results for their fiscal first quarter on Wednesday, Disney DIS and Qualcomm QCOM impressively exceeded earnings expectations while surpassing top-line estimates as well.

Having significant market leadership in their respective industries, DIS and QCOM will be two stocks to keep an eye on in the coming weeks. 

Disney’s Q1 results

Strategic initiatives to cut costs have led to a continued turnaround in Disney’s operating efficiency with Q1 net income at $3.7 billion or adjusted earnings of $1.76 per share, a 44% surge from EPS of $1.22 in the comparative quarter. Crushing Q1 EPS estimates of $1.44 by 22%, Disney has now surpassed earnings expectations for nine consecutive quarters.

Disney’s improved profitability comes as the media conglomerate had three of the top box office films of 2024 which also helped boost Q1 sales by 5% year over year to $24.69 billion and edged estimates of $24.65 billion.   

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Qualcomm’s Q1 results

Chip giant Qualcomm reported Q1 net income of $3.18 billion with adjusted earnings spiking 24% to a quarterly peak of $3.41 per share versus EPS of $2.75 in the prior period. Topping Q1 EPS estimates of $2.93 by 16%, Qualcomm has beat earnings expectations for seven straight quarters.

Quallcomm’s chipset business delivered its first $10 billion quarter, including record handset and automotive revenues. Overall, Qualcomm's Q1 sales hit a record $11.66 billion which climbed 17% from $9.93 billion a year ago and noticeably topped estimates of $10.91 billon.  

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Disney & Qualcomm’s EPS Guidance

Reaffirming its full-year earnings guidance, Disney still expects high-single-digit EPS growth in fiscal 2025 with the Zacks Consensus currently at $5.43 per share or 9% growth. Based on Zacks estimates, Disney’s EPS is projected to leap another 13% in FY26 to $6.16. It’s also noteworthy that Disney anticipates its cash from operations to be approximately $15 billion this year.

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Providing Q2 guidance, Qualcomm forecasts EPS at $2.70-$2.90 which came in above the current Zacks Consensus of $2.68 or 10% growth (Current Qtr below). Furthermore, Qualcomm expects Q2 revenues at $10.2 billion-$11 billion with Zacks estimates at $10.35 billion or 10% growth.

Zacks projections call for Qualcomm’s annual earnings to rise 10% this year and expand another 10% in FY26 to $12.32 per share.

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Bottom Line

Disney and Qualcomm stock are starting to look like they could have more upside with both sporting a Zacks Rank #2 (Buy). To that point, their FY25 and FY26 EPS estimates had already gone up in the last 30 days. The trend of positive earnings estimate revisions may continue after strong Q1 results and favorable guidance.

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