Disney shares fell nearly 5 percent after CEO Bob Iger predicted flat earnings for the company’s fiscal year, as its ESPN network continues to grapple with subscriber losses.
Speaking at an investor conference on Thursday, Iger said the Mouse House expected earnings per share for the fiscal year ending Oct. 1 to be “roughly in line” with the $5.72 generated in fiscal 2016.
A consensus of analysts had been expecting the media-and-entertainment conglomerate to post EPS of $5.88, which would have been a 3-percent gain.
After opening at $100.86 per share, Disney stock on Thursday afternoon was recently trading at $96.69, off 4.8 percent.
Iger also announced on Thursday that the service slated to launch in 2019 would stream Disney’s “Star Wars” and Marvel productions.
“We’re going to launch big and we’re going to launch hot,” he said.
As of last month, the company had still been undecided about whether it would continue to license the premium content to Netflix. By streaming the movies itself, Disney will forgo the tens of millions of dollars it receives for each franchise film from Netflix.
Disney shares also got hit in August when Disney’s third-quarter results beat earnings estimates but fell short of revenue expectations.
They now trade 16 percent below their 52-week high as Disney continues to be hit by subscription declines at ESPN – once its growth driver – and embarks on an ambitious direct-to-consumer streaming service.