We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Disney's Frozen 2 Achieves Box Office Collection Record
Read MoreHide Full Article
Disney’s (DIS - Free Report) Frozen 2 lived up to expectations as the animated movie broke box office collection record following its release on Nov 22, 2019. In the opening weekend, the sequel to 2013’s Frozen collected $358.4 million — the “biggest global animated debut of all time.”
In the United States, Frozen 2 collected $130.2 million, which is a record for any animated movie released in November or outside the peak summer season. The opening weekend collection was also the biggest ever for Walt Disney Animation.
Moreover, Frozen 2’s domestic collection makes it the “third-highest animated debut of all time in the U.S.” The movie’s domestic box office collection also surpassed Frozen’s $93 million over the five-day Thanksgiving holiday weekend.
Further, per Disney, Frozen 2 collected $53 million in China, where it had the third-highest opening weekend ever for an animated title. Additionally, the movie had the third-highest industry opening ever in Korea, the highest opening weekend ever for an animated title in France and the U.K. (over a three-day period).
Disney’s Studio Entertainment segment’s revenues benefited from strong content. In the recently concluded fourth quarter of fiscal 2019, the segment revenues surged 52% year over year to $3.31 billion. It benefited from the solid performance of The Lion King, Toy Story 4 and Aladdin.
Notably, five Disney films — Avengers: Endgame, The Lion King, Captain Marvel, Aladdin and Toy Story 4 — crossed the $1-billion mark at the global box office this year. Per CNN, Disney now holds the record for the most billion-dollar movies in a single year.
The first Frozen film had collected $1.28 billion globally, which Frozen 2 is now expected to surpass.
Furthermore, Star Wars: The Rise of Skywalker, set to launch in December, is expected to be a blockbuster. This along with the success of Frozen 2 is expected to drive Studio Entertainment segment’s first-quarter fiscal 2020 top line.
However, Disney expects 21CF film studio to report an operating loss of roughly $60 million.
Moreover, the company projects the 21CF acquisition and the impact of taking full operational control of Hulu to hurt fiscal first-quarter earnings before purchase accounting by 30 cents.
Investments in Disney+, ESPN+ and Hulu to Hurt Profits
Additionally, Disney’s bottom line is expected to be hurt by continuous spending on streaming services in the face of stiff competition from Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , and Apple’s (AAPL - Free Report) recently launched Apple TV+ service.
Disney expects continued investment in ESPN+ and Disney+, and the consolidation of Hulu to hurt DTC & International segment operating income by $850 million.
Notably, Disney launched Disney+ in the United States, Canada and The Netherlands on Nov 12. The service is priced competitively compared with both Netflix and Apple TV+.
While Disney+ costs $6.99 per month, the company is also offering a bundle package of Disney+, ESPN+ and ad-supported Hulu for $12.99 a month. This alone is anticipated to be a game changer in the streaming service space.
However, it would be foolish to ignore Apple’s aggressive pricing strategy for Apple TV+. At $4.99 per month, it has undercut the pricing of every other streaming service provider.
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Disney's Frozen 2 Achieves Box Office Collection Record
Disney’s (DIS - Free Report) Frozen 2 lived up to expectations as the animated movie broke box office collection record following its release on Nov 22, 2019. In the opening weekend, the sequel to 2013’s Frozen collected $358.4 million — the “biggest global animated debut of all time.”
In the United States, Frozen 2 collected $130.2 million, which is a record for any animated movie released in November or outside the peak summer season. The opening weekend collection was also the biggest ever for Walt Disney Animation.
Moreover, Frozen 2’s domestic collection makes it the “third-highest animated debut of all time in the U.S.” The movie’s domestic box office collection also surpassed Frozen’s $93 million over the five-day Thanksgiving holiday weekend.
Further, per Disney, Frozen 2 collected $53 million in China, where it had the third-highest opening weekend ever for an animated title. Additionally, the movie had the third-highest industry opening ever in Korea, the highest opening weekend ever for an animated title in France and the U.K. (over a three-day period).
The Walt Disney Company Price and Consensus
The Walt Disney Company price-consensus-chart | The Walt Disney Company Quote
Can Studio Strength Aid Disney’s Top Line?
Disney’s Studio Entertainment segment’s revenues benefited from strong content. In the recently concluded fourth quarter of fiscal 2019, the segment revenues surged 52% year over year to $3.31 billion. It benefited from the solid performance of The Lion King, Toy Story 4 and Aladdin.
Notably, five Disney films — Avengers: Endgame, The Lion King, Captain Marvel, Aladdin and Toy Story 4 — crossed the $1-billion mark at the global box office this year. Per CNN, Disney now holds the record for the most billion-dollar movies in a single year.
The first Frozen film had collected $1.28 billion globally, which Frozen 2 is now expected to surpass.
Furthermore, Star Wars: The Rise of Skywalker, set to launch in December, is expected to be a blockbuster. This along with the success of Frozen 2 is expected to drive Studio Entertainment segment’s first-quarter fiscal 2020 top line.
However, Disney expects 21CF film studio to report an operating loss of roughly $60 million.
Moreover, the company projects the 21CF acquisition and the impact of taking full operational control of Hulu to hurt fiscal first-quarter earnings before purchase accounting by 30 cents.
Investments in Disney+, ESPN+ and Hulu to Hurt Profits
Additionally, Disney’s bottom line is expected to be hurt by continuous spending on streaming services in the face of stiff competition from Amazon (AMZN - Free Report) , Netflix (NFLX - Free Report) , and Apple’s (AAPL - Free Report) recently launched Apple TV+ service.
Disney expects continued investment in ESPN+ and Disney+, and the consolidation of Hulu to hurt DTC & International segment operating income by $850 million.
Notably, Disney launched Disney+ in the United States, Canada and The Netherlands on Nov 12. The service is priced competitively compared with both Netflix and Apple TV+.
While Disney+ costs $6.99 per month, the company is also offering a bundle package of Disney+, ESPN+ and ad-supported Hulu for $12.99 a month. This alone is anticipated to be a game changer in the streaming service space.
However, it would be foolish to ignore Apple’s aggressive pricing strategy for Apple TV+. At $4.99 per month, it has undercut the pricing of every other streaming service provider.
Disney currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>