Walt Disney Company: Earning Expectations?
Disney investors and fans are on pins and needles as they wait for Thursday’s earnings call…
Firstly, Thursday is a big day for Disney fans and stockholders, alike.
The Walt Disney Company will release its fourth quarter and end of year results.
Recently, we posted:
And pretty much the next day, Disney stock rebounded, big time:
So, in an unpredictable year, which saw the rise of Disney+ and the closure of the Disney theme parks, full financials will bring clarity to the company’s position.
Disney will provide the latest updates on all of its businesses on Thursday, when it reports its fiscal fourth-quarter results, which correspond to the calendar third quarter. It had to contend with delayed content production, closed movie theaters, below-capacity or closed theme parks and cruises, and slashed budgets from advertisers—which will weigh heavily on earnings and revenue. Disney+, the star of the company’s streaming portfolio, may have added millions more subscribers—but they are likely not profitable yet, and won’t save Disney’s results for the period.
Jasinski added several items Barron’s expects to see on Thursday:
- A loss of $.90 per share (“73 cents after adjustments);
- An update on how September’s live-action Mulan release on Disney+ fared;
- Analysts believe there will be a nice hop in Disney+ “subscriber gains”;
- It makes sense that Disney will speak more about its recent streaming-first focus;
Finally, Barron’s reminded its readers:
Disney stock (ticker: DIS) is down about 3% since the start of the year, after a 12% jump on Monday after Pfizer revealed promising preliminary results of a Covid-19 vaccine trial. Clearly, investors still believe that the impact of the pandemic looms large for Disney’s prospects.
Finally, how do you expect Disney to fare tomorrow? How about going into a new fiscal year? What will be the biggest factor in a Walt Disney Company rebound? Be sure to tell us what you think in the comments.