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How Far Can Studio & Disney+ Drive Disney (DIS) Q2 Earnings?
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Disney’s (DIS - Free Report) second-quarter fiscal 2020 results are expected to reflect a setback it suffered from the closure of its theme parks and cruise ships as well as the postponement of movie releases in the wake of the prevalent pandemic situation.
Moreover, cancellation of sports events is expected to have affected the company’s ESPN’s ad sales business. Also, lower ad demand and spending is expected to have hurt Disney’s top line, much similar to what cable giant Comcast (CMCSA - Free Report) , Facebook and Twitter experienced in the January-March quarter.
Notably, Comcast’s advertising revenues excluding political revenues declined 4.6% year over year due to lower advertiser spending. Facebook also acknowledged weak advertising trends and didn’t provide any specific revenue guidance for the fiscal second quarter as well as the full year due to aggravating macroeconomic woes following the coronavirus.
Nevertheless, solid content portfolio of Disney+ is likely to have fetched user wins for Disney amid the pandemic-related lockdown and physical distancing in the to-be-reported quarter.
Click here to know how Disney’s overall second-quarter fiscal 2020 results are likely to be.
Disney’s Studio Entertainment segment revenues are expected to have benefited from the January-February box-office collections of Frozen 2 (released on Nov 22, 2019 in the United States) and Star Wars: Rise of Skywalker (released on Dec 18, 2019).
Markedly, Frozen 2 raked in $1.45 billion to date, per Box Office Mojo data, and surpassed the first Frozen’s collection of $1.28 billion globally.
However, lack of any major release and shutdown of movie halls due to the coronavirus outbreak beginning mid-March hit the top line.
Notably, AMC Theaters (AMC - Free Report) and Regal Cinemas, which operate 634 and 543 locations, respectively, announced closure of their movie theaters on Mar 16 following recommendations from the Centers for Disease Control and Prevention.
The coronavirus outbreak also forced Disney, which has a Zacks Rank #4 (Sell), to suspend the release of Mulan, which was originally scheduled for late March.
The Zacks Consensus Estimate for Studio Entertainment revenues is currently pegged at $2.54 billion, suggesting growth of 19% from the figure reported in the year-ago quarter but indicating a 32.6% decline sequentially.
Disney+ Solid User Base to Boost Top Line
Disney+ paid subscriber base hit 28.6 million as of Feb 3. Lockdowns and shelter-in-place guidelines due to coronavirus helped the service exceed 50 million paid subscribers globally as of Apr 8.
Notably, 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.
The company’s solid content portfolio has also been a major driver. It launched Frozen 2, three months ahead of schedule on Disney+ in the United States on Mar 15.
Internationally, Frozen 2 was beamed on Disney+ in Canada, the Netherlands, Australia and New Zealand on Mar 17.
Moreover, on Mar 24, Disney+ began streaming in the UK, Ireland, Germany, Italy, Spain, Austria and Switzerland.
The Zacks Consensus Estimate for DTC & International/Consumer Products revenues is currently pegged at $4.16 billion, indicating 4.4% growth from the figure reported in the previous quarter.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
How Far Can Studio & Disney+ Drive Disney (DIS) Q2 Earnings?
Disney’s (DIS - Free Report) second-quarter fiscal 2020 results are expected to reflect a setback it suffered from the closure of its theme parks and cruise ships as well as the postponement of movie releases in the wake of the prevalent pandemic situation.
Moreover, cancellation of sports events is expected to have affected the company’s ESPN’s ad sales business. Also, lower ad demand and spending is expected to have hurt Disney’s top line, much similar to what cable giant Comcast (CMCSA - Free Report) , Facebook and Twitter experienced in the January-March quarter.
Notably, Comcast’s advertising revenues excluding political revenues declined 4.6% year over year due to lower advertiser spending. Facebook also acknowledged weak advertising trends and didn’t provide any specific revenue guidance for the fiscal second quarter as well as the full year due to aggravating macroeconomic woes following the coronavirus.
Nevertheless, solid content portfolio of Disney+ is likely to have fetched user wins for Disney amid the pandemic-related lockdown and physical distancing in the to-be-reported quarter.
Click here to know how Disney’s overall second-quarter fiscal 2020 results are likely to be.
The Walt Disney Company Revenue (TTM)
The Walt Disney Company revenue-ttm | The Walt Disney Company Quote
Studio Entertainment to Aid Top Line
Disney’s Studio Entertainment segment revenues are expected to have benefited from the January-February box-office collections of Frozen 2 (released on Nov 22, 2019 in the United States) and Star Wars: Rise of Skywalker (released on Dec 18, 2019).
Markedly, Frozen 2 raked in $1.45 billion to date, per Box Office Mojo data, and surpassed the first Frozen’s collection of $1.28 billion globally.
However, lack of any major release and shutdown of movie halls due to the coronavirus outbreak beginning mid-March hit the top line.
Notably, AMC Theaters (AMC - Free Report) and Regal Cinemas, which operate 634 and 543 locations, respectively, announced closure of their movie theaters on Mar 16 following recommendations from the Centers for Disease Control and Prevention.
The coronavirus outbreak also forced Disney, which has a Zacks Rank #4 (Sell), to suspend the release of Mulan, which was originally scheduled for late March.
The Zacks Consensus Estimate for Studio Entertainment revenues is currently pegged at $2.54 billion, suggesting growth of 19% from the figure reported in the year-ago quarter but indicating a 32.6% decline sequentially.
Disney+ Solid User Base to Boost Top Line
Disney+ paid subscriber base hit 28.6 million as of Feb 3. Lockdowns and shelter-in-place guidelines due to coronavirus helped the service exceed 50 million paid subscribers globally as of Apr 8.
Notably, 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.
The company’s solid content portfolio has also been a major driver. It launched Frozen 2, three months ahead of schedule on Disney+ in the United States on Mar 15.
Internationally, Frozen 2 was beamed on Disney+ in Canada, the Netherlands, Australia and New Zealand on Mar 17.
Moreover, on Mar 24, Disney+ began streaming in the UK, Ireland, Germany, Italy, Spain, Austria and Switzerland.
The Zacks Consensus Estimate for DTC & International/Consumer Products revenues is currently pegged at $4.16 billion, indicating 4.4% growth from the figure reported in the previous quarter.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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