dis p/e

[msdis]

What happened to "dis" p/e since earnings were posted? The p/e had been around 45 and now it is around 145. Earnings were better than expected so the p/e should have dropped. At first I thought it was a fluke but Friday, Yahoo posted about the same. Anyone know what's going on?

 

[Wes]

Interesting ....

MSN has it at <a href="http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=PriceRatios&Symbol=dis">140.6</a>. so you are right that it does not appear to be a fluke.

 

[tiggerstheman1]

Also on MSN they list the dividends/share at .21 while the earnings/share at .22

Seems to me, someone got it wrong and put in the earnings/share for the quarter (perhaps). If you multiply the eps by 4 then do the math, it comes out to a p/e of about 35.

 

[Wes]

<a href="http://cbs.marketwatch.com/tools/quotes/detail.asp?sid=1618&symb=DIS&view=detail&siteid=mktw">CBS Market Watch</a> shows (after close on 4/30) with a Price of $30.25, EPS of $0.60, and P/E of 50.42.

 

[dshimel]

It's those one time charges.....

Companies love to do things like report 22 cents a share profit with a one-time, off-book, charge off of 48 cents a share. However, when running the financial numbers such as P/E, analysts include the "one-time" charges.

They have to, otherwise a company would move everything off-book, and have ever increasing porfits as they fell into bankruptcy. (Cisco Systems recently announced it would take a one time charge for the entire inventory sitting in all its factories and warehouses. Thus, next quarter, they won't have to pay for any of the things they sold, and it will look like their profits are back.....)

After the charge off, Disney posted a loss of 26 cents a share for the second quarter. When that is subtracted from the trailing 3 quarters profit of 48 cents (21+11+16), you're left with 22 cents per share profit for the trailing 4 quarters.

30/.22 = ~135

It is up to the individual investor to decide if they believe the off-book charges are really one-timeers..... If you think they are, then you can add the write off back on to profit and go by what you think the P/E should be considered.