The Pandemic did a number on many businesses, but entertainment companies like The Walt Disney Company (NYSE:DIS) were particularly hard hit.
After all, it’s hard to make money when the theaters that show your movies are closed to the public.
And the company’s losses didn’t stop with its movies. With no one gathering to watch its films, that also reduced enthusiasm, and negatively impacted sales, for a variety of the company’s other products, which often have movie tie-ins, including toys, video games, and even its theme parks.
As a result of the Pandemic’s impact, The Walt Disney Company (NYSE:DIS) saw its share price plummet. It is now trading 50.1% lower than its 52-week high and only slightly better than its 52-week low, according to Seeking Alpha.
The good news for the company and its investors is that people are now returning to theaters, which means the company’s main profit pipeline is ready to start flowing again.
Walt Disney: Theatrical Revenue Already Posting Big Gains!
While The Walt Disney Company’s (NYSE:DIS) theatrical distribution revenue was $2.9 billion in 2017 and $4.73 billion in 2019 …
It rapidly declined to $2.13 billion in 2020 and just $920 million in 2021 due to the COVID-19 Pandemic.
But with that movie pipeline now open again, the company’s profits could soar and take the company’s stock price along with them.
The Walt Disney Company (NYSE:DIS) has already posted significant gains thanks to the strong performance of two films released this year.
First, in May, Doctor Strange in the Multiverse of Madness posted an opening weekend domestic box office haul of $187 million, a significant improvement on the first Doctor Strange movie, which generated $85 million in its domestic release. The Multiverse of Madness movie earned $265 million globally during its opening weekend.
Next, Thor: Love and Thunder just recently earned $143 million domestically and $302 million globally during its opening weekend in July.
These numbers were significant improvements on the first Thor movie, which earned $65.7 million domestically on opening weekend, and the franchise’s second movie, Thor: The Dark World, which made $85.7 million in the US.
The most recent opening weekend total is also more than the popular third movie in the series, Thor: Ragnarok, which earned $122.7 million its opening weekend.
Will Box Office Resurgence Equal Stock Resurgence?
Thanks to increased theatrical attendance across the country, The Walt Disney Company (NYSE:DIS) is once again posting increasing revenue.
The company recently reported that revenue in the first half of 2022 was 28.9% higher than last year’s. Revenue rose from $31.86 billion in the first half of last year to $41.07 billion in the first half of 2022.
The company also reported other positive financial numbers, including net income increasing 71.5% from $918 million in the first half of last year to $1.57 billion in the first half of this year.
In other words, according to the numbers, The Walt Disney Company (NYSE:DIS) is on the upswing, and though it may still need to strengthen some pandemic-caused weak areas, it could start attracting investor attention quickly.
That’s why investors, particularly those looking for buy-and-hold value plays, may want to start doing their due diligence on this stock immediately.
This company started as a humble cartoon studio in the 1920s and grew to have a massive global reach thanks to its mission to entertain, inform, and inspire people around the world.
Now, after a difficult time in the world’s history, it may be well-positioned to resume its place as one of the top companies in the world. For example, it has a packed slate of films that it plans to release in the coming months and years, including Pinocchio, Amsterdam, Strange World, Avatar 2, The Little Mermaid, Indiana Jones 5, Black Panther: Wakanda Forever, Ant Man and the Wasp, Guardians of the Galaxy Vol. 3, and more.
Featured Image: Megapixl @ Ralukatudor
