Bob Chapek, chairman of Walt Disney Parks and Experiences, stands for a photograph at an unveiling event of Star Wars: Galaxy’s Edge at Walt Disney Co.’s Disneyland theme park in Anaheim, California, U.S., on Wednesday, May 29, 2019.
Patrick T. Fallon | Bloomberg | Getty Images
Disney is set to report earnings for its third quarter of 2020 after the bell on Tuesday as it continues to feel the impact of the coronavirus pandemic on sectors like its parks business.
Here are the key numbers Wall Street expects from the report:
- Loss per share: 64 cents expected, according to Refinitiv
- Revenue: $12.37 billion expected, according to Refinitiv
Disney has been able to reopen some of its parks with limited capacity and new restrictions to keep visitors safe, but its Disneyland theme park and resort in California was forced to delay its expected July reopening as the state pushed back its guidelines amid rising case numbers.
Last quarter, the pandemic had a profound impact on Parks, Experiences and Products, as the company reported a 58% drop in operating income for the segment.
While Disney was able to reopen some of its international theme parks during the latest quarter, it drives most of its business from its U.S-based parks. Disney World in Florida reopened in July, meaning any revenue generated was not counted in the second quarter. Disneyland in California still has no set reopening date, as the state government has not provided reopening guidelines for amusement parks.
With its largely vacant hotel space, Disney has been hosting the NBA in a “bubble” at its Disney World Orlando resort. The return of live sports should provide a bit of a boost for Disney, which owns ESPN, with several professional leagues in the U.S. beginning to resume games.
Meanwhile, Disney’s streaming service, Disney+, has benefited from stay-at-home orders across the U.S. that left millions looking for entertainment options. Tuesday’s report will shed light on how the service has fared as parts of the country begin to reopen.
With no end in sight for theater closures in many places, Disney has delayed several expected blockbuster films, including “Mulan” and new Star Wars and Avatar movies. Currently, Disney’s slate includes “New Mutants” on Aug. 28, “The King’s Man” on Sept. 18 and “Death on the Nile” on Oct. 23. Although, continued spikes in coronavirus cases in the U.S. could upend any of these dates.
Blockbuster titles “Black Widow” and “Soul” don’t arrive until November, and the company has a handful of left over Fox films it plans to release in December.
This story is developing. Check back for updates.