This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Disney Sees $200 Million Loss on 'John Carter' (Update 1)

Updated from 6:08 p.m. ET to include statement from Disney, after-hours share move.

NEW YORK ( TheStreet) -- What are the chances that Walt Disney (DIS - Get Report) goes back to Mars anytime soon?

The company endured an epic bomb last year with "Mars Needs Moms" and now it's suffering a similar fate with "John Carter," the recently released science fiction action flick based on novels written by Edgar Rice Burroughs.

The film, much of which takes place on the red planet, has reportedly taken in a little more than $53 million since its release on March 9, a disappointing performance considering its budget is estimated as exceeding $250 million.



Now the parent company is officially biting the bullet, telling media outlets its film division expects to record a loss of $200 million from the movie.

Disney, whose shares closed Monday up 25 cents at $43.44, sent along this emailed statement on Monday, explaining that it now expects its Studio business to have an operating loss of $80 million to $120 million in its fiscal second quarter ending this month.

"In light of the theatrical performance of John Carter ($184 million global box office), we expect the film to generate an operating loss of approximately $200 million during our second fiscal quarter ending March 31," the company said, adding later: "As we look forward to the second half of the year, we are excited about the upcoming releases of The Avengers and Brave, which we believe have tremendous potential to drive value for the Studio and the rest of the company."

The average estimate of analysts polled by Thomson Reuters is calling for Disney to post a profit of 61 cents a share in the quarter on revenue of $9.62 billion. The Dow component is slated to release its quarterly results on May 7.

Year-to-date, Disney shares are up nearly 16%, and the stock has recently been edging closer to its 52-week high of $44.13 set back on May 10, 2011. At current levels, the stock trades at forward price-to-earnings multiple of 12.8X vs. 13.4 for the S&P 500 as of Friday's close. The stock dipped 1% to $43 on after-hours volume of more than 200,000, according to Nasdaq.com.

-- Written by Michael Baron in New York.



>To contact the writer of this article, click here: Michael Baron.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
DIS $111.85 0.74%
AAPL $126.61 -1.60%
FB $77.58 -1.60%
GOOG $534.15 -1.20%
TSLA $232.22 0.74%

Markets

DOW 18,012.85 -57.55 -0.32%
S&P 500 2,101.44 -13.05 -0.62%
NASDAQ 4,960.9980 -55.9310 -1.11%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs