×
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

  • The First -- "The Choice" -

    'The First' Canceled at Hulu After One Season

    Hulu has grounded the space exploration drama “The First” after one season, Variety has confirmed. The series hailed from Beau Willimon and starred Sean Penn and Natascha McElhone in Penn’s first regular television role. “The First” was set in the near future and followed the first human mission to Mars. Hulu gave the show a straight-to-series order in [...]

  • Nicole Maines Supergirl Trans Hollywood Portrait

    TV Roundup: 'Supergirl' Drops First Look at Nicole Maines as TV's First Trans Superhero

    In today’s TV News Roundup, The CW releases a first look at Nicole Maines on “Supergirl” and Variety unveils an exclusive look at Gabriel Iglesias’ new comedy special.  FIRST LOOKS truTV has released the first trailer for season 2 of Emmy-nominated series “At Home with Amy Sedaris.” The variety sketch comedy returns Tuesday, Feb. 19 at [...]

  • The Beatles Eight Days a Week

    Imagine's Documentary Arm Sets First-Look Pact With Apple (EXCLUSIVE)

    Brian Grazer and Ron Howard’s Imagine Documentaries has set a first-look pact with Apple to develop non-fiction features and series. The deal comes as Imagine is investing heavily in the premium non-fiction arena. The company in June recruited RadicalMedia veteran Justin Wilkes to head Imagine Documentaries as president. The deal suggests that Apple sees docu [...]

  • Fyre Festival Documentaries: The 10 Most

    Fyre Festival Documentaries: The 10 Most Outrageous Moments

    It is perhaps only fitting that two documentaries about the disastrous Fyre Festival, one of the most high-profile fraudulent failures in history, would arrive during the same week — a fitting cap on a tragicomedy of errors that, as both films outline in excruciating detail, unfolded like a slow-motion plane crash in the spring of [...]

  • Walt Disney HQ LA

    Disney Unveils Financial Data for DTC Unit, Sets April 11 for Investor Presentation

    Disney has rejiggered its business segments for earnings reporting to make room for the new unit housing its global streaming operations. Disney on Friday released restated earnings for fiscal 2018, 2017 and 2016 to give investors and financial analysts better visibility into its spending on the launch of the Disney Plus, ESPN Plus and other [...]

  • annapurna logo

    Annapurna TV Taps Amazon's Patrick Chu as Senior VP, Promotes Ali Krug

    Annapurna TV has brought on Patrick Chu as the division’s new senior VP. Prior to that, he had served as an executive for Amazon in drama, production, and development, where he oversaw small-screen adaptations of “Hanna” and “The Hunt.” He will develop and produce new TV projects, focusing on drama, at his new role at [...]

  • Emmys: Why The TV Academy Finally

    Why the TV Academy Finally Ended Emmys DVD Madness, and Who Might Benefit the Most

    Three years ago, Netflix overwhelmed Television Academy members by sending out a 20-pound shipment of DVD screeners. It was an exercise in excess, as insiders suggested that the streamer spent as much as $4 million to produce and ship the multiple boxes. Netflix chief content officer Ted Sarandos hated the idea of sending out these [...]

More From Our Brands

Access exclusive content