Goldman Sachs analysts have predicted that Hurricane Milton, expected to make landfall in central Florida, will negatively impact The Walt Disney Company's (DIS, Financial) earnings. The hurricane may lead to park closures and operational disruptions, potentially reducing Disney's earnings before interest and taxes (EBIT) by approximately $150 million to $200 million in the first quarter of fiscal year 2025.
This financial impact is anticipated to surpass that of Hurricane Irma in 2017, which forced Disney parks to shut down for two days and disrupted some cruise operations, resulting in a revenue loss of around $100 million. Due to the expected effects of Hurricane Milton, Goldman Sachs has revised Disney's estimated earnings per share for fiscal 2025 from $5.22 to $5.14.
Further, Goldman Sachs projects a 6% decline in domestic attendance for Disney in the first quarter, a significant drop from the previously estimated 2%. As of now, Disney has not announced any park closures related to the hurricane, and a company spokesperson has not immediately responded to media inquiries regarding Goldman Sachs' revised performance expectations.
