Is the Magic still at Disney?
Published by Terence Mahier | Source

Disney will report its Q1 Earnings tonight and it doesn't look good 🤧

The Parks, Experiences, and Consumer Products segment was its fastest-growing profit driver, but it could now turn into the biggest drag. Disney has faced movie theater, film and TV production shutdowns as well as the closure of all of its theme parks 🎢

Disney has not disclosed plans for any park reopening. Analysts do not see that happening soon as the need for social distancing & travel restrictions will remain until there is a widely available vaccine 💉

With low expectations from investors, will Disney be able to reassure with a new strategic outlook?

Extra Insights

Disney shares are down 29% since Jan. as the market anticipated the impact of the pandemic on its Business starting with Shanghai & Hong Kong parks shutting down as early as January 📉

To reduce costs, Disney has furloughed as many as 100,000 workers, mostly park employees, slashed executive pay, and taken a $5 billion line of credit.

Investors are expecting per-share profit of $0.90, down 44% from a year ago. Bad news is already "priced-in" so the market could be positively surprised by not-so-bad results - but eventually, all eyes will be on the long-term vision on how to get out of this crisis 🔮

What Happened on the market eventually?

Disney reported mixed results for its Q2 2020 earnings after the bell on Tuesday.
Disney reported a 58% drop in operating income from parks and cruises, its worst-hit segment. But total revenue came in line with expectations of around $18B. No major move for now as the stock oscillates between the positive and negative - investors will make up their mind during the following days...

- Newspill Team 💊
06-May 08:53 (Eastern Time)

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