Walt Disney Co. (NYSE:DIS) stock was down 1.75% in late morning trading on January 3. The company is gearing up for a huge year to conclude the decade.
The biggest news is the launch of its streaming service, which it is heralding as a legitimate competitor to Netflix and other top options. The service, called Disney+, will offer Disney-owned movies and television shows and original programming from franchises like Star Wars and Marvel. Disney+ will reportedly focus more on family-friendly entertainment and will come cheaper than Netflix, Amazon Prime, and other streaming services.
For the full-year in 2018, Disney saw earnings per share climb to $8.36 compared to $5.69 in the prior year. Total revenues rose 8% to $59.4 billion and free cash flow increased 13% to $9.83 billion.
The Studio Entertainment segment had a banner year as net income rose 19% to $9.98 billion. Avengers: Infinity War took in over $2 billion worldwide and Black Panther shocked analysts by forking in over $1.3 billion internationally. The sequel to the latter, Avengers: Endgame, is set for release on April 26 and is expected to generate another massive return.
Netflix will still carry recent Disney content like Avengers: Infinity War until the end of 2019. However, starting in 2020 only Disney+ will carry this content. Disney stock had an unremarkable 2018 in the face of solid revenues and a fantastic performance in its Studio Entertainment segment. Investors should expect broader volatility to continue in 2019, which makes Disney more of a defensive option right now.
