August 3, 2020

Disney Rips

Walt Disney (NYSE: DIS) theme parks revenue droped 85%, but Disney+ subscribers hit 57.5M. The company reported quarterly earnings of $0.08, which beats the analyst consensus estimate of a -$0.64 EPS.

However, the company reported quarterly sales of $11.78 billion, which missed the analyst consensus estimate of $12.39 billion by 4.9%. This is a 41.8% decrease in sales of $20.25 billion in the same period last year.

Disney’s theme parks revenues decreased by 85% for a loss of $3.5 billion. But that isn't a huge surprise as a global pandemic is taking place. The company reports 57.5 million Disney+ paid subscribers as of June 27. Which is nearly 1/3 of Netflix's 182.8 million subscribers.

Disney also announced they will be debuting their big-budget remake of “Mulan” as a $30 rental on its streaming service as they announce a nearly $5B loss.

Earnings (Dump) Truck

Shares of Nikola (NASDAQ: NKLA) are down 12% after the company reported its first earnings report. Shares made a positive move throughout the day as investors were excited by the first report.

The company reported -$0.13 EPS (earnings per share) That translates to a $87 million net loss.

To many new investors this actually might sound crazy, but that was a beat of expectations. Nikolas analyst had estimates of -$0.16 EPS or a $107 million net loss. Looks like Deutsche Bank telling everyone to buy before earnings want a great idea.

Investors are frantically selling share of a company that has no product and basically no revenue which shouldn’t be a surprise. We are curious what they were expecting.

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Ford Likes Jims

Ford CEO Jim Hackett announced today that he will be stepping down and retiring from his role since 2017, effective October 1st. Hackett will be succeeded by COO Jim Farley.

Hackett has been unable to turn around the Detroit automakers fortunes in his 3+ years. Since he took over, the stock has dropped from around $11 to a mere $7 today.

The new Ford CEO, Jim Farley, hopes to turn this downward trend around with the new fleet of Ford vehicles -- Aluminum F-150, Mustang Mach-E, and the highly anticipated Bronco.

Bill Ford, the company’s executive chairman stated “We now have compelling plans for electric and autonomous vehicles, as well as full vehicle connectivity. And we are becoming much more nimble, which was apparent when we quickly mobilized to make life-saving equipment at the outset of the pandemic”. It’s clear that Ford is taking steps to grow and progress in the future, and we at 

EVO believe that the heart of Detroit is only getting stronger.

We’re Not Lawyers

Kodak is under investigation by the SEC.

I’m not saying we’re lawyers or anything or genies…. but we did call this.

Wait is the SEC reading this?

The SEC is investigating the conditions under which NYSE: KODK announced a $765M government loan to make drugs at its U.S. factories.

News of the loan caused the stock price to rise from $2 to nearly $60 within 3 days and then gradually back down to $15 today due to a dilation of the shares. 

This price spike caused potential risk to company executives who were granted stock options on July 27, the day before the loan was officially announced.

Nothing may come from these investigations, but it will be interesting to see how the stock reacts in the coming days.