Disney's day of earnings reckoning leaves Wall Street anxious
Mickey Mouse rides in a parade at Disney World's Magic Kingdom in Orlando, Florida. Photo: Joe Raedle/Getty Images
Wall Street is anxiously awaiting Disney earnings at market close today, after several analysts have already begun to downgrade the stock due to its unique exposure to the coronavirus epidemic.
Why it matters: Roughly half of Disney's revenue is directly tied to industries that have been shut down, like parks and resorts, advertising and film.
Disney's damage control so far:
- Furloughed 100,000 employees
- Freed up roughly $13 billion in credit
- Pushed blockbuster movies like Mulan off the release schedule while theaters are mostly closed and delayed production
Yes, but: The one bright spot for Disney throughout the pandemic has been Disney+, which Disney says has surpassed 50 million subscribers.
What to expect: Moody's SVP Neil Begley says that he expects Disney to take a hit in Q1, but that "the dramatic impact that's coming is really in Q2."
- "We're anticipating that this will be a rough couple of quarters for the company."