Disney Earnings Disappointment and Strategic Concerns

about 1 month ago

"Okay. So Disney reporting sales, the sales fell short of expectations. And big budget films like the new Avatar picture that's going to weigh on results. Revenue for the fourth quarter little changed at 22 and a half billion dollars. The earnings dollar 11 a share. So that's a beat. Disney's entertainment division faces a number of challenges on several fronts streaming films and TV. They predict $375 billion in operating income from online video in the first quarter. That's higher for the business, higher profit. But Wall Street was expecting more. You also have these expenses tied to Zootopia, too, and Avatar, Fire and Ash, that's going to reduce earnings by $400 million. I kind of wonder why they're releasing Avatar, what, December 17th, I think. Yeah, they're not going to capture a lot. I know. I don't get it. Usually they do it before Thanksgiving. Then you have the theme park and cruise unit experiences. They're going to have $150 million in planned expenses in the first fiscal quarter. New ships and dock work for the. Yeah, I don't know. They're doing the one I had two or three new ships and each one of the ships is like $1,000,000,000 or something. I went back and looked, you can do this on the Bloomberg. A ten year per year return of Disney is 1% per year. Yep. Is it a failed blue chip? I mean do we. It's it's a tough business and it's a business that's dealing with this all this disruption from the Internet and Netflix."

The commentary highlights Disney's mixed earnings where EPS beat expectations but revenue fell short. Significant challenges include high-budget film releases and large planned expenses, which cast doubt on the company's strategic scheduling and overall competitiveness in the disrupted entertainment industry.

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