Analysts Predict that Disney Could Lose $1 Billion for Every Month the Parks Remain Closed

[Disney4me]

With such a drastic interruption to Disney’s business model, there have been lots of discussions on the kind of losses they’ll be enduring.

Cinderella Castle

Analysts have been making tons of predictions as to what Disney’s financial loss will look like after all of this. Now, some are saying that Disney could lose around $1 billion every month that the parks remain closed. Let’s see what they’re looking at.

According to CNBC, Bernstein analyst Todd Juenger and his team are estimating a monthly impact of $1 billion to earnings before interest and taxes. This figure was determined after balancing offsets such as employee furloughs and the reopening of Shanghai Disneyland.

©ShanghaiDisneylandResort on Instagram

Now, Juenger acknowledges that the estimate could use some added information. “We intend to continue doing work to refine this estimate, but we don’t have much to go on,” he noted. “Disney did not provide nearly as much information as we had hoped with respect to the burn rate of Parks while they are closed or the economics of opening at reduced capacity.”

Disneyland Main Entrance

During their quarterly earnings call, Disney reported a hit of $1 billion to second-quarter revenue as the result of the closure of the parks, cruises, and stores. We’ll keep an eye on reports from Disney and analyst predictions.

To see more of what the analysts are saying, click here!

What do you think of these predictions? Let us know in the comments!

Related posts:

1. One Wall Street Analyst Thinks That Disney World Could Reopen SOON
2. It Could Take Two Years for Disney Parks to Return to Normalcy Predicts Wall Street Analyst
3. Will Disney World and Disneyland Reopen at the Same Time?

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