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Can Disney's (DIS) Studio Segment Make a Turnaround in FY18?
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The Walt Disney Company (DIS - Free Report) , which has struck gold with almost every release in fiscal 2016, has somewhat disappointed in 2017 as the year has been dull for the movie industry.
In fiscal 2017, the Studio Entertainment garnered revenues of $8,379 million, down 11% year over year as the prior year results benefited from robust performance movies released in 2016. The notable movie releases in 2016 were Captain America: Civil War, Finding Dory and Zootopia, all of which surpassed $1 billion at the box office. Further, Jungle Book saw excellent business with a worldwide collection of $966 million. These movies drove the segment’s revenues by 28% to $9,411 million in fiscal 2016.
However, analyst believes in fiscal 2018, the segment is likely to be back on track as the company has an impressive line-up of movies. Movie lovers are already pumped up as Star Wars: The Last Jedi will hit the theatres in December. In 2018, the company is also expected to release movies like Black Panther, A Wrinkle in Time, Avengers: Infinity War, The Incredibles 2 and Ant-Man and the Wasp.
Further, analysts believe that the deal with Rian Johnson, the director of The Last Jedi, to produce a brand new Star Wars trilogy have fueled optimism surrounding the movie business.
Analysts’ positivity about the new Star Wars trilogy has helped the stock outperform in a month. This Zacks Rank #3 (Hold) stock has gained 5% compared with the industry’s gain of 0.6%. Meanwhile, shares of other media stocks like Comcast Corporation (CMCSA - Free Report) , Time Warner Inc. and CBS Corporation have declined 1.2%, 8.8% and 1.7%, respectively. You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The success of movie business is crucial for Disney as the loss of subscribers at ESPN and decline in rating at the company’s youth-focused Disney Channel has been a major concern. Further, blockbuster movies will ensure great business for its Consumer Products division as demand for merchandise associated with blockbusters movies usually skyrockets as evidenced in the case of Frozen. Also, addition of these popular themes to Parks & Resorts is likely to increase footfall.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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Can Disney's (DIS) Studio Segment Make a Turnaround in FY18?
The Walt Disney Company (DIS - Free Report) , which has struck gold with almost every release in fiscal 2016, has somewhat disappointed in 2017 as the year has been dull for the movie industry.
In fiscal 2017, the Studio Entertainment garnered revenues of $8,379 million, down 11% year over year as the prior year results benefited from robust performance movies released in 2016. The notable movie releases in 2016 were Captain America: Civil War, Finding Dory and Zootopia, all of which surpassed $1 billion at the box office. Further, Jungle Book saw excellent business with a worldwide collection of $966 million. These movies drove the segment’s revenues by 28% to $9,411 million in fiscal 2016.
However, analyst believes in fiscal 2018, the segment is likely to be back on track as the company has an impressive line-up of movies. Movie lovers are already pumped up as Star Wars: The Last Jedi will hit the theatres in December. In 2018, the company is also expected to release movies like Black Panther, A Wrinkle in Time, Avengers: Infinity War, The Incredibles 2 and Ant-Man and the Wasp.
Further, analysts believe that the deal with Rian Johnson, the director of The Last Jedi, to produce a brand new Star Wars trilogy have fueled optimism surrounding the movie business.
Analysts’ positivity about the new Star Wars trilogy has helped the stock outperform in a month. This Zacks Rank #3 (Hold) stock has gained 5% compared with the industry’s gain of 0.6%. Meanwhile, shares of other media stocks like Comcast Corporation (CMCSA - Free Report) , Time Warner Inc. and CBS Corporation have declined 1.2%, 8.8% and 1.7%, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The success of movie business is crucial for Disney as the loss of subscribers at ESPN and decline in rating at the company’s youth-focused Disney Channel has been a major concern. Further, blockbuster movies will ensure great business for its Consumer Products division as demand for merchandise associated with blockbusters movies usually skyrockets as evidenced in the case of Frozen. Also, addition of these popular themes to Parks & Resorts is likely to increase footfall.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>