ESPN Has Issues; The Walt Disney Company Does Not

Image source: The Walt Disney Company

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The Walt Disney Company (NYSE: DIS) reported another solid quarter. The entertainment conglomerate topped analyst expectations of adjusted EPS of $1.61 and revenue of $14.17 billion by posting results of $1.62 and $14.28 billion, respectively. Still, it wasn't a perfect report. Let's look at where Disney is underperforming and consider CEO Bob Iger's strategy to transition the company to withstand future threats to its business.

Media Networks is still sluggish, and things could get tougher from here

Analysts are understandably concerned about the slowdown in Disney's media networks division. To recap, media networks is a major part of Disney's revenue and operating income. The following chart shows Disney's revenue on a divisional basis over the past eight quarters:

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