[ad_1]
Media and Entertainment Conglomerate Disney (DIS) is releasing its first quarter fiscal year results late Thursday, in hopes of its struggling parks business as streaming subscribers jump. Disney’s stock was down.
X
Disney Revenue Report
Estimates: Analysts expect Disney to post a loss of 45 cents per share against EPS of $ 1.53 a year ago, as revenues fall 24% to $ 15.8 billion, according to Zacks Investment Research.
Results: Come back after the closing.
As theme parks and theaters remain closed and cruise ships dock, continued growth is accelerating. Disney + had 86.8 million subscribers as of December 2. They will offer a bigger increase in income in March, when the monthly rate increases from $ 1 to $ 7.99 in the United States and from 2 euros to 8.99 euros per month in Europe.
Disney + accounted for 6% of the average consumer’s time spent streaming each week in December 2020, while its rival Netflix (NFLX) edged down to 28% from 31% in December 2019, JPMorgan analyst Alexia Quadrani wrote in a note to clients.
Pixar’s “Soul” finished No. 1 during Christmas week, according to Nielsen’s ranking. Shows like “WandaVision” and “The Mandalorian” have been big hits for Disney +. “The Mandalorian” has been making headlines in recent days for another reason as well. Lucasfilm, which produces the Star Wars series, announced yesterday that it has fired star Gina Carano, who played former Rebel Alliance soldier Cara Dune, for controversial political comments on social media.
Disney stock
Shares slipped 0.2% to 189.24 in the stock market today. Disney stock has passed a buy point of 183.60 and is still in the buy range from a flat base, according to MarketSmith’s chart analysis.
Its relative strength line, which compares a stock’s performance to that of the S&P 500, is on the rise. Disney stocks have an RS rating of 73 out of a possible 99.
Among streaming rivals, Netflix fell 1% on Thursday, Apple (AAPL) lost 0.8% and Amazon (AMZN) fell 0.7%.
IBD Live: a new tool for daily stock market analysis
Will California Parks Reopen Soon?
Disney’s stock was upped earlier this week, when Disneyland President Ken Potrock told employees that a ticketed food event was in the works for California Adventure in mid-March. Company officials said the event will run several days a week at reduced capacity.
The event would bring around 1,000 workers back to the park and raise hopes for a wider opening, which would help ease a major drag on Disney’s bottom line and inventory.
According to media reports, Disneyland is also considering annual passes for the separation of the day when the park reopens. This means that pass holders can visit the park during certain parts of the day at a reduced price. This would allow park officials to control crowds when it reopens during a pandemic.
Meanwhile, California lawmakers introduced a bill last week that would allow Disneyland to reopen earlier than the current plan. The bill wants to place theme parks in orange (moderate) level 3 of the state’s Covid-19 guidelines for reopening amusement and theme parks. Currently, themed parts are not allowed to reopen until the county in which they reside reaches yellow level 4 (minimum).
In December, the guidelines were amended to allow small parks to reopen at level 3. The bill calls on authorities to treat large and small parks alike.
If the bill is passed, Disneyland could only operate at 25% of its capacity. Disneyland has been closed since March 2020. It is not expected to reopen until spring or summer.
IBD 50 growth stocks to watch: find the best stocks to buy and follow
Disney + Upcoming Assault
During the pandemic, the streaming service was a bright spot for Disney action, and big plans are ahead.
At an Investor Day event on December 11, management said there were more than 100 titles in the works for Disney +. And CEO Bob Chapek said the company expects to have 230 million to 260 million Disney + subscribers by 2024. This is an increase from its earlier estimate of 60 million to 90 million for the same period. .
Meanwhile, U.S. customers who signed up for Disney + through promotional offers remain. Verizon (VZ) said more than two-thirds of customers who dropped out of the original Disney + promotion chose to continue with the subscription either through Verizon or by going for a mix-and-match plan that included the Disney package for free, said declared Quadrani.
Please follow Adelia Cellini Linecker on Twitter @IBD_Adelia.
YOU MAY ALSO LIKE:
Is Disney Stock a buy right now?
Is Netflix Stock Buy It Now?
Why this IBD tool makes it easier to find the best stocks
Want to get quick profits and avoid big losses? Try SwingTrader
IBD Digital: Unlock IBD Premium Stock Lists, Tools & Analysis Today
[ad_2]
Source link