Disney's 2016 remaining lineup
Alice Through the Looking Glass: May 27
Disney's Alice in Wonderland, the 2010 version directed by Tim Burton, was a major hit, with Johnny Depp playing the Mad Hatter. Burton is the producer for this sequel, with James Bobin stepping in as director. Depp is back, as is Mia Wasikowska as Alice, who must travel back to the mystical Underland to save the Mad Hatter.
Finding Dory: June 17
BFG: July 1
Pete's Dragon: Aug. 12
The Light Between Oceans: Sept. 2
Queen of Katwe: Sept. 23
Doctor Strange: Oct. 26
Moana: Nov. 23
Rogue One: Dec. 16
What this means for Disney's stock
Analysts and the overall market have been questioning Disney's growth prospects because of declining subscriber rates for ESPN and pressure on its cable networks business. These concerns have helped to keep the stock trading about 20% off its peak of August of last year. Disney's ESPN challenges are primarily a matter of distribution, as consumers eliminate cable or go for cheaper bundles. Disney is already working to provide ESPN in new and innovative ways, and this problem is likely to be taken care of soon.
Meanwhile, the company continues to perform very well in its Studio Entertainment segment, which grew profits 60% in the past two quarters compared with the same period last year. Studio Entertainment makes up only about at about 15% of total profit, making it the third largest segment behind the Cable Networks and Theme Parks segments, but it also provides the stories and characters that help to fuel the other segments' growth.
As the challenges with the cable networks division are overcome, the market is likely to give the stock the credit it deserves. Undoubtedly, this potential uptick will be further fueled by impressive continued success at the box office.
Bradley Seth McNew owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.