×
You will be redirected back to your article in seconds

Disney Q3 Earnings Flat as ‘Lone Ranger’ Sinks Studio Revenue

Studio entertainment revenue down 2% from last year

The Walt Disney Company reported quarterly results for its third fiscal quarter with earnings per share increased to $1.03 from $1.01 during the same last year but revenue missed the mark overall at $11.58 billion, down from Wall Street expectations of $11.64 billion.

“We are pleased with the results we delivered in the third quarter,” said Disney CEO Robert A. Iger in a statement. “We are confident that our strategy of creating high-quality branded content positions us well for the future.”

Studio entertainment dipped 2% from last year to $1.59 billion in sales with “Iron Man 3,” ESPN and “Monsters University” helping offset “The Lone Ranger’s” pre-released marketing costs.

Box office underperformer “The Lone Ranger,” which was released July 3 and won’t impact the studio until next quarter, could cost the studio as much as $190 million in Q4.

SEE ALSO: ‘The Lone Ranger’ Could Cost Disney Up to $190 million in Losses

Media Networks was one of the few highlights of Tuesday’s earnings report, with revenues increased 5% to $5.4 billion and segment operating income increased 8% to $2.3 billion.

Parks and Resorts also increased 7% to $3.7 billion and segment operating income increased 9% to $689 million.

The theme parks have especially performed strongly for Disney, with Rasulo saying that investments to upgrade Walt Disney World and Disneyland “continue to pay off.” Overall, attendance at its domestic parks rose 3% and set new attendance records during the company’s third quarter.

Disney said it hasn’t seen “any backlash” from recent price increases at its theme parks. In fact, California Adventure is continuing to see strong attendance levels after the opening of “Carsland” last year. “California Adventure is lapping the success of a year ago, a bit,” Iger said.

While Walt Disney World will add an “Avatar”-themed park at Animal Kingdom, no opening date has yet been announced. “It will be a couple years out, at least,” Iger said.

Additional plans to upgrade Disneyland will also be announced over the next couple months, Iger added.

Disney’s stock rose $1.03 to close at $67.05, gaining nearly 1.6% on Tuesday but shares lost that ground in after hours trading, when the stock fell $1.05 to close at $66.

Popular on Variety

More Biz

  • Barron HiltonBarron Hilton 1990

    Famed Hotelier Barron Hilton Dies at 91

    Barron Hilton, a famed hotelier who helped expand the Hilton Hotels empire and a founding owner of the Chargers NFL football team, has died, the Conrad N. Hilton Foundation announced. He was 91. “Today the world of hospitality mourns for one of the greats. Barron Hilton was an incredible family man, business leader and philanthropist. [...]

  • Patrick Whitesell and Ari Emanuel WME

    Endeavor Targets Sept. 27 for Stock Debut, IPO Video Tells Company's Origin Story

    After years of preparation, Endeavor is set to make its formal Wall Street debut on Sept. 27, when its stock will begin trading on the New York Stock Exchange. Endeavor has targeted Sept. 26 for the final pricing of its shares. The stock will trade publicly the following day. Earlier this week, Endeavor said its [...]

  • Netflix - Apple TV

    Netflix Stock Drops After CEO Acknowledges 'Tough Competition' Coming From Disney, Apple

    Netflix shares fell as much as 7% Friday to a nine-month low, coming after CEO Reed Hastings commented that the November launches of Disney Plus and Apple TV Plus will introduce a “whole new world” of competition. Hastings, speaking at the Royal Television Society conference Friday in Cambridge, England, said, “While we’ve been competing with [...]

  • Charlie Rose Sexual Harassment

    Charlie Rose Sued for Sexual Harassment by Longtime Makeup Artist

    A makeup artist who worked for Charlie Rose for 22 years has filed a sexual harassment lawsuit, accusing the former CBS and PBS host of years of unlawful behavior toward female employees. Gina Riggi alleges that Rose was verbally abusive with her and would often make derogatory comments about her weight. She also alleges that [...]

  • Rob Stringer

    Sony Music Chief Rob Stringer on Sustaining Growth and Recovering From the 'Dark Times'

    The Goldman Sachs Communacopia conference, now in its 28th year, gives top executives at major companies the opportunity to make their case to investors — and the Goldman analysts the opportunity to keep things on the up and up. While the analysts don’t necessarily grill the executives, they don’t lob softball questions either. That was [...]

  • Frank Grillo'Avengers: Endgame' Film Premiere, Arrivals,

    Matt Phelps Tapped as President of Joe Carnahan, Frank Grillo's Warparty

    Frank Grillo and Joe Carnahan’s Warparty productikon banner has appointed Matt Phelps president of the company. Phelps will head the Los Angeles office and be responsible for overseeing all film and television projects. “We searched long and hard to find the right fit for Warparty and felt that Matt embodied everything that we were looking [...]

  • Jack Gilardi, Longtime ICM Partners Agent,

    Jack Gilardi, Longtime ICM Partners Agent, Dies at 88

    Jack Gilardi, a longtime ICM Partners agent who represented such stars as Burt Reynolds, Sylvester Stallone, Jerry Lewis, Charlton Heston and Shirley MacLaine, died Thursday at his home in Los Angeles. He was 88. Gilardi was known for his gentlemanly style, love of the Los Angeles Dodgers and his skill at representing top actors. He [...]

More From Our Brands

Access exclusive content