Disney earnings could show strength in films, parks
The Walt Disney Company plans to announce third quarter earnings after the market closes today. Analysts expect good news from the company’s theme parks and films.
Disney’s theme parks have experienced growing attendance and have raised prices. A few weeks ago, the company unveiled plans for its Shanghai theme park, which is set to open next year.
Disney’s films have also been doing well. Avengers: Age of Ultron has grossed nearly $1.4 billion in global box office receipts. The animated feature Inside Out has made $600 million globally. Also, Disney is gearing up for the next installment in the Star Wars franchise, which is scheduled in theaters during Christmas.
“This is one of the most anticipated movie launches in a very long time,” says Brad Adgate, research director at Horizon Media. “There [are] going to be several billion-dollar movies this year — probably a record — and I think Disney will have a share of those.”
But analysts will also be listening for potential trouble signs. Disney’s profitable cable channel ESPN is reportedly engaged in cost-cutting, after losses in cable subscribers. And the media conglomerate could announce a significant write-down, north of $100 million, after its film Tomorrowland underperformed at the box office.
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