Disney Shares Dip Amid Announcement Marvel and Star Wars Will Join Standalone Streaming Service
Walt Disney Chief Executive Bob Iger said on Thursday the company’s earnings per share for this year will roughly be in line with a year ago, dragging down shares of media stocks.
Disney earned $5.72 per share in fiscal 2016. Analysts are expecting the company to earn $5.88 this year, according to Thomson Reuters.
Shares of the company fell nearly 3% (DIS) to a 10-month low, dragging down CBS (CBS) and Twenty-First Century Fox (FOX), 3% and 4%, respectively.
Media companies are struggling as viewers migrate to streaming options offered by Netflix (NFLX), leaving behind traditional pay-TV packages.
The company previously did not disclose the distribution plan for the films from superhero studio Marvel and Star Wars producer Lucasfilm after the deal with Netflix ends in 2018.
Iger made the comments at the Bank of America Merrill Lynch 2017 Media, Communications & Entertainment Conference.