Disney’s profit warning drags down U.S. media stocks

Walt Disney Co Chief Executive Bob Iger said on Thursday that the business’s earnings per share for this year will likely be consistent with a year ago, dragging down shares of media stocks.

Iger also said Disney’s streaming service would only feature movies from blockbuster franchise “Star Wars” and Marvel movies such as “Avengers” and “Iron Man.”

Disney earned $5.72 per share in fiscal 2016. Analysts are expecting the company to earn $5.88 annually, according to Thomson Reuters I/B/E/S.

Shares of the company fell nearly 3 percent to a 10-month low, dragging down CBS Corp and Twenty-First Century Fox Inc, 3 per cent and 4 percent, respectively.

Media companies are fighting as audiences migrate into streaming options offered by Netflix Inc, leaving behind conventional pay-TV packages.

Disney said last month it would launch its own streaming service and stop providing new films to Netflix beginning in 2019.

The company previously failed to disclose the supply plan for the movies from superhero studio Marvel and “Star Wars” producer Lucasfilm following the deal with Netflix finishes in 2018.

Mr. Iger made the remarks at the Bank of America Merrill Lynch 2017 Media, Communications amp; Entertainment Conference.

Courtesy: The Globe And Mail

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