Walt Disney Co. has arranged its fiscal
second-quarter earnings report after the market close on Tuesday (May 9). Analysts are eyeing for a report of a net
income of $1.45 per share for the quarter being considered compared to last
year’s $1.36 per share. Revenue is expected to hit $13.45 billion against
$12.97 billion from last year.
Disney Competition
The
months being covered are January to March of the current year. As an
entertainment company, its four major business segments are: Media Networks,
Parks and Resorts, Studio Entertainment, and Consumer Products and Interactive
Media. It competes with other huge media companies like the Time Warner, Twenty
Century Fox, Comcast Corp., CBS, Viacom and a lot more others.
Media Networks Decline
During
its first quarter results, Disney reported unsatisfactory results attributed to
a weak performance of the company’s media networks. The revenues plummeted to
2% year over year whereas the operating income waned by 4% which was because of
soaring programming costs and scarce subscribers of the media networks.
Investors Await Disney TV
Business
Now,
investors are on the lookout on the entertainment mogul television businesses.
The TV division, specifically ESPN, is dragging the company downwards since two
years ago as there are declines in TV subscriptions.
Media
networks comprise the largest division of Disney. Investors are aware that the
company is having a hard time promoting its TV networks such as ABC and ESPN.
There are realizations that Disney is planning to acquire rights to revive
American Idol as it had begun getting Ryan Seacrest on “LIVE!”
Analysts’ Expectations
It
might be in small lone digit, but analysts are expecting a year-over-year
growth with Walt Disney Co. The media giant is breaking out from a decline in
revenue the last time and is perceived to be taking baby steps towards the
right direction this time.
Beast to the Rescue
Last
March, the film Beauty and the Beast grossed more than $1.1 billion following
successes of Rogue One, Moana and Doctor Strange. Investors would like to see
if Beast can save Disney such that declines could be considered minor all
together as the media giant does not provide earnings guidance.
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Earnings Report: Would it be the Happiest Day for Disney Investors?
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