Walt Disney Co. (NYSE:DIS) stock was down 0.29% at the bottom of the noon hour on November 13th. Shares have increased 0.25% in 2017 as the company has faced a number of challenges going forward.
Disney released its fourth-quarter results on November 9th. It saw revenues decline 3% to $12.7 billion compared to $13.1 billion in Q3 2016. Net income dropped 1% to $1.74 billion from $1.77 billion in the previous year.
The parks and resorts segment saw the best operating results, up 6% to $4.6 billion in the quarter. The worst performing segment was studio entertainment, which fell 21% to $1.4 billion from $1.8 billion in the third quarter of 2016. With the next Star Wars installment slated for a December release Disney should see an uptick in this regard.
Media networks also declined 3% with ESPN showing lower advertising revenue due to a decline in average viewership. NFL ratings have seen a significant dip in viewership as the league has been embroiled in a political battle, both with its players and with the sitting U.S. President. However, ratings had already started to decline the previous year, raising a more concerning possibility that the league may be facing a broader crisis.
Disney is working to decrease the proportion of its earnings that rely on ESPN revenues, reportedly to under 20% by 2020. The stock still comes at an attractive price considering the boon that should come from the Star Wars release and its forthcoming streaming service. The stock also offers a dividend of $0.78 per share with a 1.5% dividend yield.
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