Coronavirus-related lockdowns and social distancing requirements have had a massive impact on Walt Disney (NYSE: DIS) earnings this year, primarily due to Disneyland park closures. Disney announced on Monday that it will be furloughing more of its Disneyland park staff in Southern California.
Reuters cited an internal memo from Disneyland resort President Ken Potrock who said that the decision to cut executives, salaried employees, and hourly workers jobs was due to uncertainty over when the parks can reopen. “The recently released state guidelines put us in limbo regarding a reopening timeline in the foreseeable future,” Potrock reportedly said. The exact number of furloughed Disneyland workers is not yet known, but it comes on top of the 28,000 employees that were laid off already in September. California health authorities dashed hopes of the parks reopening and stated that it will not be possible until the county’s risk level falls to the lowest of California’s four tiers regarding the spread and infection rate of the virus.
Disneyland parks did open in Florida and those outside of the U.S earlier this year without experiencing any major coronavirus outbreaks. Strict social distancing, mask use, and testing was used to control any possible spread of the virus. However, Disneyland in the French capital was instructed to close in October as Paris is in the mist of battling a second wave of cases that have spread across Europe. In Asia, where the virus originated, Disneyland parks are still open in Shanghai, Hong Kong, and Tokyo.
When will Disney report its fourth-quarter earnings?
Walt Disney will report its fourth-quarter (Q4) earnings for 2020 on Wednesday, 12th November.
How can I listen to Disney’s earnings?
To access the report and financial statements for the quarter, all you need to do is visit the Walt Disney’s Investor Relations page.
What to expect from Walt Disney’s Q4 2020 earnings:
The onset of the COVID-19 pandemic is expected to continue having an impact on the financial performance of Walt Disney this year. The company’s theatrical, home entertainment releases, advertising market, television programming, demand for products, and theme park ticket sales have all been hit hard.
Bloomberg analysts expect Disney to hit revenue of $14.14 billion this quarter, a decline of 25% from the year prior. Losses per share are estimated at $0.62, versus $1.07 in the prior year’. Disney’s experiences and park ticket sales are expected to have the largest drawdown on revenue.
However, Disney+ is expected to be the star in the report as the entertainment bundles, which include ESPN and Hulu, are predicted to have done well this quarter. Investors can expect questions on when Disneyland California parks will be reopened, theatrical releases, if Disney is going to release content straight to Disney+ going forward, and how the company is performing in countries not as badly affected by the pandemic.
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Financial Writer at MyWallSt
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