Disney Sees Profit ‘In Line’ With Last Year and Shares Drop
- Analysts had predicted a profit boost of 3 percent in 2017
- TV troubles, fewer film releases contribute to sluggish year
Why Disney Shares Are Tumbling After Iger's Remarks
Walt Disney Co. Chief Executive Officer Bob Iger said earnings in 2017 will be “roughly in line” with last year, disappointing investors who sent the stock tumbling as much as 3.9 percent.
The entertainment giant has been under pressure to improve profit. Its TV business has faced criticism it failed to anticipate the competitive threat posed by Netflix and overpaid for sports rights for its ESPN cable network. Meanwhile, the movie unit is also expected to have a down year amid box office disappointments that included the latest installments in the “Pirates of the Caribbean” and “Cars” film franchises.