Disneyland has decided that the price of non-entry level tickets will be raised from $7 to $12.
According to an announcement by Walt Disney Co. on Wednesday, the annual pass price will also increase by up to $125.
Goldman Sachs analysts are not convinced that the price increase will have a positive impact on earnings in near-term.
They expect that Category 5 hurricane Milton will have a negative impact on the performance of the entertainment giant in fiscal 2025.
Disney stock is down by nearly 25% from its high of early April.
Goldman Sachs lowers earnings estimates for Disney
Goldman Sachs predicts that the hurricane could result in a loss of $150 to $200 million in the EBIT for the company’s Parks and Experiences Division in the first quarter of fiscal year.
Hurricane Irma, which struck in 2017, lowered earnings by about $100 million.
The investment firm predicts a 6.0% drop in domestic attendance for the first quarter and Disney will report earnings per share of $5.14 for the full-year, down from its earlier estimate of $5.22.
Goldman Sachs, however, has left its forecast for Q4 unchanged. The results are due to be released in the month of November.
Walt Disney Co. is not yet aware of any plans to close its parks due to Hurricane Milton, which is expected in Florida later today.
A spokesperson from the company also declined to comment on the possible effects on earnings.
Is Disney stock a good investment in October?
Goldman Sachs analysts are confident that Disney stock will reach $120 in the next 12 months, despite the financial impact of Hurricane Milton.
This price target represents a potential gain of 30% over its current levels.
Other notable figures such as Jim Cramer the famous investor, also have a positive outlook for Walt Disney Co.
In a letter sent to members of his Investing club, the host of Mad Money gave reasons for his confidence in Disney’s shares. He cited an improved movie slate, a stronger cruise business, and management’s commitment towards cost-cutting.
Cramer called DIS an “earnings-story,” adding that the “earnings will be pretty good.”
The shares of this media giant offer a current dividend yield of 0.81 percent, which enhances their appeal as a source of robust total returns.
Disney stock is still a good investment, even though it has lost approximately 25% in the last six months.
This post Disneyland raises its prices but Hurricane Milton poses a headwind to earnings may be modified based on updates.
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