Goldman Sachs analysts have warned that Hurricane Milton could affect Walt Disney Company’s earnings. The threat of the hurricane could lead to park closures, especially in areas such as Florida where Disney World is located. This could result in lower revenue due to a decrease in visitor numbers, as people may cancel or postpone their plans due to safety concerns.
Moreover, if any significant damage is done to the properties, the costs for repairs and reconstruction could also eat into the company’s profits.
Additionally, the suspension of operations and delay in production of movies and TV shows due to the hurricane could also impact Disney’s earnings. This further adds to the financial blow windstorms like Milton can deliver, given the ongoing COVID-19 pandemic the entertainment industry is still grappling with.
However, it’s important to keep in mind that these are potential impacts, and the exact effect on Disney’s earnings will depend on the severity of the hurricane and how effectively the company manages its response.
