Some factors that might hurt Disney’s stocks for this year before its first quarter release

Disney Stocks Trading

Investors are currently awaiting the earnings report of Disney’s first quarter, which is set to be released on Tuesday’s closing bell. The market hasn’t been in the favor of media stocks and here are some of the reasons that might pull down Disney stocks.

On the previous year, this American diversified media and entertainment conglomerate didn’t perform that well compared to its previous year. Profits and sales immensely dropped for the very first time since 2010, just in time for its several movie releases. There have been speculations that it might trouble the popular streaming service Netflix.

Disney will report its fiscal first-quarter report just before the market closes, stepping up new financials on the same day. Its shares have been solid above $100 for more than three months. Some analysts are suggesting that it has to have a strong quarterly report to remain in that handle. However, Disney is still getting support from its movie studios that are certified box office hits.

There have been possibilities that stocks of Disney might fell short for this year as speculators are expecting its revenue to rise about 5 percent at $15.46 billion. This has been considered a slow growth because it only jumped by 4 percent at $1.61 per share. Companies usually find a way to land before the rough estimates of Wall Street experts.

Bob Iger, CEO of Walt Disney released a statement suggesting that the pace of its subscribers have been sluggish in the previous quarter and shareholders are hoping cash-flows to be stabilized. This could buy the company more time before putting final touches.


Leave a Reply

Your email address will not be published.