Goldman Sachs has warned that upcoming Hurricane Milton could impact Disney’s earnings. Hurricanes are known to disrupt business operations and can lead to extensive property damage, causing financial strain on businesses. Relevantly, Disney, which operates theme parks in areas often hit by hurricanes, like Florida, could see a decrease in park attendance and possible structural damages. Additionally, hurricanes could disrupt film/TV productions amongst other business operations. Thus, the earnings hit would stem from the increased costs and reduced revenues. Therefore, potential investors should consider these risks. However, Disney’s diverse portfolio of businesses can also help mitigate the potential negative impacts. The severity of the financial impacts often depends on the magnitude of the hurricane and how effectively disaster management is handled.
