Tomahawk, WI 08/05/2014 (Basicsmedia) – The Walt Disney Company (NYSE:DIS) is set to announce its earnings after the close of markets today, awaiting to see the impact of the FIFA world cup, Theme Parks and Studios on its earnings as well as future guidance. It is still unclear as to what impact the World Cup had on ESPN although the match between Portugal and U.S more than doubled the networks peak ratings. It is also unclear as to how ESPN capitalized on the world cup bonanza in terms of ads revenue that should have a significant impact on Disney earnings for the quarter.
“It is really hard to predict; the U.S Portugal game more than doubled the previous peak in terms of ratings for the world cup and FIFA in ESPN. In terms of capitalizing on U.S interests in the FIFA World Cup, I mean it is really hard to know how much upside to ESPN ad revenue we are going to see,” said Anthony Diclemente, Nomura Securities Senior analyst, on CNBC.
The Walt Disney Company (NYSE:DIS)’s third quarter earnings will mostly be driven’ by earnings from Theme Parks as well as ads revenue from the FIFA world cup. NBA playoffs earlier in the quarter should also have some impact on company’s revenues as well as the ongoing success of studios entertainment and consumer products.
Analysts at Nomura expect a big quarter in terms of earnings for Disney with their estimate being 10 cents above the consensus estimate of the street. Investments at the parks are expected to be the driving force behind the company’s impressive results.
“We at Nomura, our estimates is 10 cents above the street and we think the investments in ‘MyMagic Plus’ at the parks have sustainable effects in terms of allowing guests to plan their stay, increasing per-capita spend, having a positive impact on occupancy. So the Parks are really on fire here,” said Mr. Diclemente.
Disney’s studios have also been in top gear according to, Diclemente, with productions like Captain America Marvel and Guardians of Galaxy enjoying a streak of success in terms of revenue. Diclemente also maintains that The Walt Disney Company (NYSE:DIS) is worth investing taking into consideration its stock is up 14% this year and 32% up over the past 12 months.