Tuesday May 5 2020 08:54
1 min
Disney is a three-part business now – theme parks, films and streaming. Whilst streaming is going very well – thanks in no small part to lockdown – the other units are not performing so well.
DIS was downgraded to neutral from buy by MoffettNathanson ahead of the company’s earnings to be released after the market close on Tuesday (May 5th).
“There are a number of risks that could lead this unprecedented event to have a longer impact, with earnings revisions massively skewed to the downside,” 5-star analyst Michael Nathanson wrote in the update.
“Our Disney downgrade is also an admission that we believe the economic impact on the company will be longer than most anticipate, especially given the risks of a second wave of infections after reopening.”
MoffettNathanson expects the theme parks unit revenues to fall 33% from $26.2 billion to $17.7 billion this fiscal year, which ends in September. Revenues are seen down 1% next year as the drag from Covid-19 lingers before bouncing back 22% in 2022. In films, the analyst sees earnings down 20% this year to $2.7bn on a 23% drop in revenues.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
Latest
View allFriday, 15 August 2025
3 min
Friday, 15 August 2025
2 min
Thursday, 14 August 2025
5 min
Sunday, 17 August 2025
Indices
Trump-Putin Alaska Summit: Positive Tone, Few Details, and European Concerns
Sunday, 17 August 2025
Indices
Market Review: Interest Rate Expectations, Tech Innovations, and Global Economic Events
EN
