The Walt Disney Company(NYSE:DIS)'s proposed purchase of Lucasfilm and the `Star Wars' franchise will be on the radar on Thursday evening when the media and entertainment company will be announcing its third quarter results after market closes.
The company announced the new abut its intended acquisition for $4.05 billion last week and said that it planned to revive the hit movie series trilogy starting in 2015.
Analysts will be expecting Walt Disney to throw more clarity on this acquisition and its future plans. The Street will also be interested in the advertising market, which has been looking soft of late, a result of the slowdown in the economx and the sluggish corporate profit growth.
Broadcasters are facing tough times with TV ratings having gone down this season, compared to last year. Advertisers usually peg their marketing and ad budgets depending on the viewership of programmes.
A good chunk of viewership in July to September was taken away by NBC, which had the rights to the broadcast of the London Olympics. This has hurt other broadcasters such as ABC network and CBS Corp.
The cost involved in making the acquisition as well as other expenses involved in making the next film in the Star Wars series is expected to be a drag on the company's profitability. Lucasfilm has been estimated to generate $800 million in revenues annually.
Analysts polled by expect Disney to post adjusted earnings of 68 cents per share on $10.9 billion in revenue.
Last year, Disney earned an adjusted 59 cents per share on revenue of $10.4 billion.