*By Chloe Aiello*
Disney's new streaming service and its acquisition of Fox assets will be the main fixation when the entertainment giant reports earnings and revenue after market close on Thursday.
Analysts are estimating earnings per share of $1.34 on about $13.73 billion in revenue for Disney's ($DISN) quarter. If the House of Mouse makes the grade, that would mean a 25.2 percent increase in earnings per share and a 7.4 percent boost in revenue since last year.
"There is something almost of a script right now with Disney earnings, where you have a pretty solid quarter out of the theme parks and resort segment, pretty solid quarter out of studios ー we saw Marvel's 'Ant-Man and the Wasp' as their big summer blockbuster ー and then maybe a more muted performance out of media networks, which houses its all-important cable and broadcast and ESPN network," Elaine Low, a reporter for Investor's Business Daily, told Cheddar on Thursday.
Beyond the numbers, investors will be looking for updates on the launch of Disney's dedicated streaming service, progress on the ESPN over-the-top service Disney launched in April, and what newly-acquired Twenty-First Century Fox ($FOXA) assets might mean for the media conglomerate.
"I think we should expect to hear quite a bit of discussion about how the new ESPN+ streaming platform is doing. And what to expect when the new Disney branded streaming platform launches late next year," Low said.
A growing number of cord-cutters have had disastrous effects on Disney’s all-important cable division. But it's preparing to clap back with the roll out of a dedicated Disney streaming service at the end of 2019.
The big question, Low said, is to what extent the streaming service will dominate the market after its launch in late 2019.
But it won't be Disney's first taste of over-the-top services. It's been about six months since Disney rolled out ESPN+ to consumers. The service, which goes hand-in-hand with the ESPN app, targets cord-cutters and cord-nevers by delivering exclusive live programming to subscribers.
Investors "are hoping to see some sort of indication that that is picking up steam and acting as something of a supplemental subscriber driver, where ESPN is losing subscribers," Low said ー but since the company didn't disclose subscriber figures last quarter, investors shouldn't necessarily expect them this time around.
On Tuesday, Disney secured conditional approval from the European Union for its acquisition of select Twenty-First Century Fox assets, including Fox's stake in Hulu, National Geographic, and more than 300 international channels. Investors will likely expect some updates on the acquisition Thursday, particularly as it pertains to Hulu, in which Disney will hold a 60 percent stake after the acquisition.
"\[CEO Bob\] Iger did not rule out the possibility of bundling ESPN+, Hulu and the Disney branded platform on the last quarterly call. We'll see if he has any more thoughts on bundling this time around today," Low said.
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
