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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Media

Disney banks on revenue diversity in upcoming earnings call

How will China’s zero-Covid policy impact the mouse’s theme park earnings?

The Walt Disney Company (NYSE:DIS) is expected to release its earnings for the fourth quarter on Tuesday, November 8.

Wall Street forecasts a 15% year-on-year revenue bump in the quarter to US$21.3bn, and a 38% adjusted earnings-per-share (EPS) increase to $0.51.

Achieving these results would culminate in a 25% annual revenue increase to US$84.4bn and a 58% annual EPS increase to US$3.59.

The mouse house’s diversity of revenue streams has been its saving grace amid global turmoil, though macro concerns shouldn’t be underestimated.

Theme park earnings countered a post-pandemic drop in media and entertainment earnings, but Disney’s Shangai resort is suffering due to China’s zero-Covid policies.

Netflix’s surprising third-quarter rebound, which outperformed on revenues and underscored 2.4mln new subscribers, proved that Disney+ shouldn’t be underestimating the drawing power of its competitions’ catalogues.

To make matters worse, Disney+ has had to push back the release date of a number of blockbuster titles, including Blade and Deadpool.

DIS shares are currently trading 37% down year to date at US$99.25.

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