What if we told you that Covid-19 almost crippled Disney’s empire in 2020? How the pandemic shutdown theme parks and halted dock cruise during the busy season? Or even the idea of Disney joining the great streaming wars and stock prices rising like a phoenix from the ashes?
This may sound like something out of a fairy tale…yet this is the reality.
Since the start of the pandemic almost a year ago when Disney stocks collapsed to a 52-week low of $79.07 back in March, shares have gained over 110% as of writing while year-to-date prices are up almost 4%.
When is Disney’s earnings call and what to expect?
Get our Weekly Commitment of Traders Reports: - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.
Get Our Free Metatrader 4 Indicators - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter
Disney reports earnings on Thursday, February 11 after US markets close.
It is widely known that 2020 was a tough year for the company thanks to the terrible combination of box office delays, cancelled cruises, and theme park closures. However, the fairy godmother known as Disney+ was able to save the day.
According to Bloomberg, the house of mouse is expected to lose $0.38 per share on revenue of $15.91 billion in the fiscal first-quarter marking a 23.7% fall from a year ago. For the full year, earnings per share are projected to decline 59.6% to $1.56, while full-year revenues are forecast to hit $69.24 billion – marking a 6.5% increase from 2019.
What to watch out for….
It’s all about Disney+ and the pandemic-battered theme parks.
The streaming platform boasted a whopping 86.8 million subscribers as of December when Disney reported at its investor day. Although this pales in comparison to Netflix’s nearly 204 million global subscribers, the rate of growth for Disney+ is phenomenal, especially when factoring in how the platform was only launched over one year ago. Bloomberg consensus is projecting about 91 million Disney+ subscribers for fiscal 1Q with some estimates ranging as much as 100 million. Given how the company will also be increasing the price of Disney+ by $1 to $7.99 for U.S. users starting in March, this could result in more revenues.
How about the cash producing juggernaut?
In regards to the theme parks, they may recover in 2021 with improved attendance as vaccines gain widespread adoption. Although Q4 was a tough year due to the surging Covid-19 cases, there is some light at the end of the tunnel.
There have been reports that Disney’s California Adventure Park is set to open for a “limited-time ticketed experience”. While no official opening date has been set, this development signals a shift and raises expectations over more theme parks re-opening in 2021. The positive impacts will not be reflected in the pending earnings but could offer clues over what to expect from Disney this year.
Disney to hit fresh record highs?
Taking a look at the technical picture, Disney shares are bullish on the daily timeframe as there have been consistently higher highs and higher lows. Prices are trading above 50, 100, and 200 Simple Moving Average while the MACD points to further upside. A positive earnings report may inject bulls with enough inspiration to push prices beyond the 190.64 all-time high. Should bulls run of steam due to disappointing earnings, prices may sink back towards 183.50.
Disclaimer: The content in this article comprises personal opinions and should not be construed as containing personal and/or other investment advice and/or an offer of and/or solicitation for any transactions in financial instruments and/or a guarantee and/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.
Article by ForexTime
ForexTime Ltd (FXTM) is an award winning international online forex broker regulated by CySEC 185/12 www.forextime.com