Disney Earnings at Risk as Hurricane Milton Approaches. Goldman Sachs analysts are cautioning that Hurricane Milton, currently intensifying off the U.S. Gulf Coast, could negatively impact Disney’s quarterly earnings if it makes landfall near Florida. With Disney’s flagship theme parks in Orlando directly in the storm’s potential path, analysts anticipate potential disruptions that could temporarily close park operations and impact visitor turnout. This could result in revenue losses for Disney, especially during a peak period of tourist activity.
Whereas, Hurricane Milton May Inflict $175 Billion in Losses.
According to Goldman Sachs, park closures from extreme weather events such as hurricanes can lead to declines in ticket sales, concessions, and hotel bookings, which are among Disney’s most profitable revenue streams. The analysts estimate that even a brief shutdown could result in earnings losses in the range of tens of millions, depending on the storm’s severity and duration of disruption.
“While Disney has well-established protocols for hurricane preparedness, a direct hit could necessitate extended closures and require significant resources for repairs, affecting revenue and operating costs,” Goldman noted. In addition to Disney’s theme parks, the hurricane could also impact cruise line operations if it disrupts scheduled routes in the region, adding further pressure to the company’s quarterly results.
This is not the first time that Disney has faced potential earnings challenges from hurricanes, as the company’s Florida operations are situated in a region frequently affected by extreme weather events. Nevertheless, Goldman Sachs maintains a positive long-term outlook on Disney, noting that its diverse revenue streams and entertainment assets provide resilience.
With Hurricane Milton’s path still uncertain, Disney’s response and preparedness will be critical in mitigating potential financial losses. As the storm approaches, investors are watching closely to gauge any long-term impact on Disney’s bottom line and the wider tourism economy in Florida.
