Walt Disney Co. (NYSE:DIS) stock had dropped 1.23% at the bottom of the noon hour on March 19. Shares have fallen as part of a broader sell-off in U.S. indexes. Analysts are anxiously awaiting the rate decision from the U.S. Federal Reserve and its new chairman Jerome Powell.
The news has been relatively good for Walt Disney in recent months. The company released its first quarter results on February 6. Diluted earnings per share soared 88% year over year to $2.91. Walt Disney was the benefit of a massive $1.6 billion one-time tax benefit due to the U.S. Tax Cuts and Jobs Act which was enacted in December 2017.
Parks and resorts was the only segment to report positive operating income in the first quarter – up 14% year over year to $1.3 billion. Media networks, studio entertainment, and consumer products and interactive media were all down from the prior year. However, there is good reason to believe its studio entertainment segment could receive a boost due to the performance from its recent releases.
Star Wars: The Last Jedi raked in over $1.3 billion worldwide and is still in theatres. Black Panther, a Marvel property owned by Disney, recently passed the $1 billion mark and was a pleasant surprise for studio executives to begin the year. Disney has yet another Star Wars property on tap in 2018, as well as Avengers: Infinity War. Both installments of The Avengers, and all three Star Wars Disney releases thus far, have surpassed $1 billion worldwide at the box office.
Walt Disney stock has dropped 4.3% in 2018 thus far. With plans to launch a competitive streaming service and its studio entertainment segment looking to build momentum, Walt Disney may be an attractive buy-low candidate today.
