Walt Disney DISis slated to report second-quarter fiscal 2018 results on May 8.
We expect robust top-line and operating income growth at the Parks & Resorts segment, which has now been restructured as Parks, Experiences and Consumer Products segment, to drive Disney’s overall results in the to-be reported quarter.
Notably, the Parks & Resorts segment revenues and operating income have beaten the Zacks Consensus Estimate in the trailing four quarters.
In the last reported quarter, Parks & Resorts segment revenues (33.6% of first-quarter revenues) increased 13% year over year to $5.15 billion. The segment’s operating income surged 21% to $1.35 billion, driven by growth at the company’s domestic parks and resorts, cruise line and vacation club businesses.
Click hereto know how the company’s overall Q2 performance is likely to be.
Strong Visitor Growth to Aid Top Line
The media giant’s continuing investment on Parks & Resorts is reaping benefits. Disney’s strategy of better-load balancing of attendance throughout the year is driving up the number of visitor growth rate.
The segment continues to show robust performances both domestically and internationally owing to rise in customer spending, higher ticket prices and attendance.
At first-quarter conference call, management stated that domestic resort reservations for the second quarter were up 3% year over year, while booked rates rose 13%. The segment top-line is expected to benefit from the one-week of Easter holidays that fell in the last quarter.