You will be redirected back to your article in seconds

Disney Tops Earnings Estimates, but Revenues Fall Short

The Walt Disney Company has topped Wall Street earnings estimates for its fiscal second quarter that ended on March 31, thanks to strong performances by feature films and theme parks.

The company, however, fell short on revenues with $13.34 billion, which were up 3% over the year-ago quarter, while analysts had expected $13.45 billion. Disney reported the earnings after the market closed on Tuesday.

Disney shares took a hit in afterhours trading in the wake of the revenues not meeting expectations. Shares were down more than 2%, falling $2.68 to $109.39 a share as of 6:40 p.m. EDT.

Earnings for the quarter were up 15% to $2.39 billion, or $1.50 a share. Analysts had been expecting $1.41 a share.

“Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our studio, and parks and resorts,” said Chairman and CEO Bob Iger. “Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth.”

“We’re pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term,” he added.

Disney’s movie studio benefited from two films — “Rogue One: A Star Wars Story” and “Beauty and the Beast.” Both pics have grossed more than $1 billion worldwide, although a majority of “Rogue One” box office came in the previous quarter. The studio entertainment segment saw revenues edge down 1% to $2.03 billion while operating income soared 21% to $656 million for the quarter.

“Theatrical distribution results were comparable to the prior-year quarter,” Disney said. “The current quarter
benefited from lower pre-release marketing costs and the strong performance of ‘Beauty and the Beast.’ However, these benefits were offset by the performance of ‘Star Wars: The Force Awakens’ and ‘Zootopia’ in the prior-year
quarter compared to ‘Rogue One: A Star Wars Story’ and ‘Moana’ in the current quarter. ‘Zootopia’ was released in the second quarter of the prior year, whereas ‘Moana’ was released in the first quarter of the current year.”
Weak ratings and higher programming costs at ESPN and ABC were a drag on earnings. ESPN’s distribution revenue was also hit by subscriber losses. Disney said that its cable results were also held down by higher programming costs from a new NBA deal and three additional college football playoffs in the quarter.
Revenues in the overall media networks segment rose 3% to $5.9 billion while operating income slid 3% to $2.2 billion. Operating income for the broadcast networks segment rose 14% to $344 million with revenues up 3% to $1.88 billion, thanks to sales of “Iron Fist” and “How To Get Away With Murder.”
Theme park operating income gained 20% to $750 million with revenues up 9% to nearly $4.30 billion. Disney says gains were due to the Shanghai Disney Resort, which opened last year helped, along with increases at the U.S. theme parks.
The consumer products and interactive media sector generated a 3% increase in operating income to $367 million while revenues fell 11% to $1.06 billion. The games business improved due to the discontinuation of Infinity console games in the year-ago quarter. Retail business operating income declined because of strong sales in the prior-year quarter for “Frozen” and “Star Wars”  merchandise.

More TV

  • Lachlan Murdoch

    New Fox CEO Lachlan Murdoch Announces All Employees to Receive Stock in Company

    The new standalone entity Fox Corp. held a town hall on Thursday, just over a day after the official closing of the 21st Century Fox-Disney merger. Fox Corp. chairman and CEO Lachlan Murdoch led the meeting, at which sources say he announced that all employees would receive stock in the new company. The amount of [...]

  • Deadwood

    'Deadwood' Movie Drops First Trailer, Premiere Date (Watch)

    HBO is taking fans back to Deadwood. Nearly 13 years after the hit Western series ended, HBO Films has released the first look at “Deadwood: The Movie.” The film will premiere on the network on May 31. Series regulars Ian McShane, Timothy Olyphant, Molly Parker and John Hawkes will reprise their roles in the film, [...]

  • Jeaninne Pirro

    Fox News Will Keep Jeanine Pirro Off Schedule for Another Week

    “Justice With Judge Jeanine,” the Saturday-night opinion show led by Jeanine Pirro, will be off the Fox News schedule for a second week in the wake of remarks she made about a Muslim congresswoman. The network’s online schedule shows that it will run another repeat of the documentary series “Scandalous” in its place Saturday night [...]

  • Drew Goddard

    Drew Goddard Inks Exclusive Overall Deal With 20th Century Fox TV

    Writer, director and producer Drew Goddard has signed an exclusive, multiyear overall deal with 20th Century Fox Television, under which he will write, create, direct and develop new TV series for the studio across all platforms. Goddard’s deal, announced by Disney Television Studios and ABC Entertainment chairman Dana Walden, is the first to close since [...]

  • AVOD streaming video OTT users -

    Comcast Unveils 'Flex,' a Streaming Service for Internet Customers

    Comcast said it would unveil “Flex,” a hub for its Internet-only customers that allows them to stream and purchase shows and movies, the latest effort by a traditional cable provider to latch on to customers who are migrating to broadband services, The Philadelphia cable giant will also make free, ad-supported services available via the service, [...]

More From Our Brands

Access exclusive content