The Walt Disney Company (DIS) is set the report quarterly earnings today after the bell. Analysts surveyed by FactSet expect $1.07 per share on $12.87 billion in revenue.
Will the so-called “Frozen effect” continue more than a year after the hit animated feature became the obsession of every kid under the age of ten?
“It’s not done but the frozen effect is actually getting a little slushy,” says Yahoo Finance’s Senior Columnist Michael Santoli. “This was the quarter last year when it became essentially the big blockbuster that we now know it to be… You don’t have it as a tailwind anymore.”
Still, Santoli thinks Disney will be just fine given what he called the “Frozen echo effect” throughout their business, especially merchandising. Santoli is confident in the likes of ESPN continuing its dominance through the last quarter.
But not all is well with Mickey and company. There have been reports that the opening of Shanghai Disneyland will be delayed and then there’s the measles outbreak. The outbreak of about 100 cases nationwide is thought to have begun at Disneyland in Anaheim, California.
“It’s not a big deal for the company, at least this quarter, because it’s a relatively new phenomenon,” notes Yahoo Finance’s Editor-in-Chief Aaron Task. “But if you’re a parent and you believe in vaccination and you’re thinking about taking a trip to Disneyland or Disney World are you gonna think twice?”
The issue could have an impact going forward but Task says he doesn’t “think it’s going to be an event for Disney.”
As for the share price, Santoli thinks the good news is there for shares to move past $100, but it probably won’t happen on the back of this earnings report.