Disney Parks: A Worry For Investors?
With an investor call due on Tuesday afternoon, stock analysts and stockholders alike are waiting on a report on the second quarter.
- Last year, Disney’s Parks, Experiences, and Consumer Products segment was its fastest-growing profit driver.
- The coronavirus pandemic has crippled the theme park industry, causing amusement parks around the globe to shutter in order to stem the rate of infection.
- On Tuesday, Disney is set to tell investors how the company fared during the first three months of the year, its fiscal second quarter.
Whitten also wrote:
In 2019, Disney’s Parks, Experiences, and Consumer Products segment garnered $6.17 billion in revenue during the second quarter ending March 30, representing 41.3% of Disney’s total revenue during that three-month period.
While Disney will take a hit from parks being closed for a portion of the second quarter, the third quarter will be much worse, as parks will likely have been closed for the full three-month period.
And, earlier today, MarketWatch.com posted:
Disney stock downgraded ahead of earnings on leverage concerns
“We believe Disney will be forced to cut back on strategic investments and substantially reduce costs, just as investors were hoping they would increase investment to take advantage of their successful pivot to streaming,” Greenfield said. He argued that Disney is “built on shared group experiences,” writing that until people feel comfortable congregating again, “Disney’s earnings are fundamentally impaired.”
Full disclosure, this reporter owns around five shares of the stock and is looking to buy on any knee-jerk reaction to the above news. And I am certain a whole other people will look to do the same.
There is NOTHING I would like to do more — given safe conditions — than go back to Walt Disney World and hitting Oga’s Cantina.
Seriously. Nothing centers my thinking about rough times like thinking ahead to my next trip to Hollywood Studios.
And, now with the amazing news about the Star Wars franchise posted yesterday, I would make a bet that a whole lot of people are looking forward to seeing a Disney movie, traveling to Orlando or Anaheim, and or buying a Disney product as soon as possible
Hey, I’m no analyst and I am not looking to make a quick buck, but I’m certainly willing to take a chance on my small number of shares, and maybe add to them on a hunch that The Walt Disney Company will bounce back.
But I am also going to wait and see what The Walt Disney Company reports this afternoon.