Disney stock is taking a beating after reporting disappointing third-quarter revenue and earnings growth figures, but it’s nowhere near time to panic. In fact, now might be a great time to put more faith in the long-term value of The Mouse.
The market giveth and the market taketh away. Nowhere is that more evident than the sell-off in Walt Disney Company (NYSE:DIS) stock, which is being punished for the sin of not living up to (perhaps too) high expectations.
Sure, Disney beat most third-quarter expectations—it just didn’t beat them silly.
Tough to believe that investors are heading for the hills despite a record quarter in which revenues came in at $13.1 billion (a 5% year-over-year increase) compared to estimates of $13.2 billion, operating income came in at $1.45 per share (beating estimates of $1.42) and net income surged to an 11% year-over-year increase of $2.5 billion.
Disney stock has delivered a very healthy 19% return for investors so far this year, and 221% over the past five-year span. In addition, it has thrown off a steady dividend increase, standing today at $.66 cents per share semi-annually.
While perhaps the rocket-ship stock appreciation may slow a bit, Disney stock is about as rock-solid a long-term investment as you’ll find.
Here are three reasons the House That Walt Built will thrive and survive long after your great-grandchildren finish their third trip to the Magic Kingdom.