April was a rough month for Walt Disney (DIS 1.54%) investors. Shares of the media giant plummeted 19% last month, and it seemed as if nothing went right. Investors became concerned as streaming video stocks came under pressure after the leading premium service fell short of expectations. Disney also got tangled up with Florida politicos. Can Disney turn things around this month?
There's a lot going on at Disney this month. Let's see how a telltale earnings report, fresh content, and a new Disney World ride could turn things around in May.
Image source: Disney.
May 6
This has been a surprisingly quiet calendar year for Disney at the local multiplex. Disney hasn't put out any of the country's 10 highest-grossing films of 2022, but that's about to change this weekend. Marvel's Doctor Strange in the Multiverse of Madness hits theaters on Friday.
Marvel films have been big winners at the box office. It also only helps that Dr. Strange himself played a significant role in last year's Spider-Man: No Way Home, the highest-grossing movie since the pandemic started. It helped fans of the more iconic Spider-Man franchise warm up to Dr. Strange. This won't be the last big movie out of Disney. The pipeline is loaded with new releases hitting multiplex screens in the coming months.
May 11
It's earnings season, and Disney will get its quarterly say next week. It will offer up its fiscal second-quarter results after the market close on May 11.
With Disney shares down nearly 40% over the past year, a strong financial update can help turn things around. Analysts see the leading media stock checking in with $18.9 billion in revenue for the first three months of this calendar year (but technically Disney's second fiscal quarter). It will be a 21% increase from last year's depressed results when Disneyland and its cruise lines were still closed. Profitability is expected to more than double to $1.07 a share.
A strong report isn't always enough. Disney had an upbeat report last time out, and here we are with the stock at its lowest point in nearly two years. Investors will want to see if Disney can build on its previous report's record theme park results and encouraging Disney+ subscriber additions. The upside appears stronger than the potential downside here, but a volatile market can shake up the playing field.
May 20
Not every major Disney movie release is going to a theater near you these days. Chip 'n Dale: Rescue Rangers -- a full-length feature film based on the popular animated TV series -- is debuting on Disney+ later this month. The new movie incorporates live action with animation, aiming for nostalgic millennials with a cast that includes John Mulaney, Andy Samberg, and Seth Rogen.
Disney+ ran into a few growth hiccups last year. Keeping new shows and films coming to the platform naturally helps with attraction and retention.
May 27
The world's largest theme park operator routinely introduces new rides and attractions, but Disney World's Epcot is getting a pretty big addition. Guardians of the Galaxy: Cosmic Rewind opens on Memorial Day weekend. It will be the popular park's first roller coaster, giving Epcot a new attraction to woo adrenaline junkies to a place that's been historically light on white-knuckled thrill rides.
Disney is billing the new ride as its first "story coaster," as the vehicles rotate to showcase scenic elements on the ride. The indoor scream machine has launches and a variable on-ride soundtrack. It will also be Disney World's first Marvel-themed ride. The Florida park is limited in the franchises that it can use at its theme parks, as rival Universal Orlando owns regional theme park licensing rights for Marvel's biggest characters. With the summer season coming, it's a great time to have a big new ride. Its largest rival has been largely silent since its latest major addition last year.
