Disney Earnings Impact Commentary

about 1 month ago

Valerie Titel

"Disney on a backfoot uh down 3.1% after these earnings in the pre-market. The sales fell short of estimates and they posted roughly flat revenue and a decline in operating income during the previous quarter. But another major worry for the path forward for Disney is expenses. The entertainment company said a slate of big budget films will weigh on expenses and results in the next quarter. They cited expenses tied to the release of Zootopia 2 and another Avatar movie will reduce earnings by 400 million. They also claimed that their theme park and cruise unit will have an additional 150 million in expenses in the first quarter tied to new ships and dock work. So, Disney shares on a backfoot after these worries over expenses down around 3% in the pre-market."

The commentary outlines Disney's earnings challenges, noting a 3.1% pre-market drop driven by missed sales estimates and upcoming expense pressures from big-budget films and theme park investments. Although long-term earnings are projected to grow by fiscal 2026, near-term results appear subdued.

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