**Stormy Weather Ahead: Disney’s Earnings May Take a Hit from Hurricane Milton**
A powerful hurricane is barreling towards central Florida, threatening to disrupt operations at Walt Disney’s theme parks and dent its earnings. According to analysts at Goldman Sachs, Hurricane Milton’s impact could reduce Disney’s Parks and Experiences segment earnings by a whopping $150 million to $200 million in the current fiscal quarter.
This estimated hit would surpass the $100 million loss Disney suffered during Hurricane Irma in 2017, when the parks were forced to close for two days and cruise ship operations were disrupted. As a result, Goldman Sachs has revised its earnings per share estimate for Disney’s fiscal 2025 from $5.22 to $5.14.
The storm is expected to make landfall near Tampa, bringing sustained winds of 145 mph, before heading towards Orlando, where Disney World is located. While Disney has yet to announce any closures, the park’s attendance is projected to take a 6% hit in the first quarter, a significant decline from the initial 2% estimate.
Goldman Sachs has maintained its outlook for Disney’s recently ended fourth quarter, with earnings per share expected to reach $1.16 and Parks and Experiences segment operating income projected at $3.8 billion.
As Hurricane Milton bears down on Florida, Disney’s investors will be keeping a close eye on the storm’s progress and its potential impact on the company’s bottom line.
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