Caution on Disney's Mixed Q4 Performance

about 1 month ago

Tom Keane with Paul Sweeney and John Tucker

"So Disney reporting sales the sales fell short of expectations and uh big budget films like the new Avatar picture that's going to weigh on results. Revenue for the fourth quarter little change at 22.5 billion. The earnings uh $111 a share. So that's a beat. Uh Disney's entertainment division faces a number of challenges on several fronts. Streaming films and TV. Uh they predict $375 million in operating income from online video in the first quarter. That's higher uh for the business, higher profit, but Wall Street was expecting more. You also have these expenses tied to Zootopia 2 and Avatar Fire and Ash. That's going to reduce earnings by $400 million."

The speakers detail Disney's mixed Q4 performance with underwhelming sales and rising expenses from upcoming releases and theme park investments, questioning the company's blue-chip status. They highlight the challenges in the entertainment division as streaming competition intensifies.

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