×
You will be redirected back to your article in seconds

Disney Earnings Beat Estimates, but Fall Short on Revenue

The Walt Disney Co. on Tuesday reported fiscal first-quarter earnings of $1.89 per share, beating earnings estimates but falling short of expectations on revenue.

The better-than-expected earnings was in part due to the recently enacted federal tax changes, creating a one-time $1.6 billion boost to the company, Disney executives said during a call with analysts.

The Burbank-based media conglomerate reported revenues of $15.35 billion, up 4% from the same period last year, but short of the $15.5 billion analysts had been expecting. Net income was $4.4 billion, up 78% from the same quarter last year.

The earnings report comes amid a widespread market contraction that saw the Dow plunge more than 1,100 points on Monday, but by Tuesday, Wall Street had rebounded somewhat. It’s also the first report since Disney announced in mid-December that it would buy film and television assets from Fox, in a deal valued at $52.4 billion.

Iger did not divulge many details about the pending acquisition, starting out the call addressing the status of the deal.

“The regulatory process has begun,” Iger said, adding that in several weeks he has met with business leaders at Fox to gain insight into their operations. “I’m even more enthusiastic about the businesses we are acquiring and the management teams leading them.”

Iger said the acquisition of Fox’s film and TV assets will “deliver more content and production capabilities,” adding that it “will greatly diversify our businesses geographically.”

The deal is expected to beef up Disney’s library ahead of the launch of a Disney-branded streaming service launching in late 2019. Iger on Tuesday also revealed the monthly subscription cost of its forthcoming ESPN Plus streaming app, debuting this spring. The service will cost $4.99 a month. It will feature an array of sports in a new app that will feature personalized news and other content, Iger said.

Across its divisions, Disney reported that revenues for media networks, studio and consumer products were slightly down or flat. Parks and resorts reported a 13% rise in revenue from the same quarter last year.

The decline in revenues for media networks was largely due to lower advertising revenue, higher programming costs and lower operating income from program sales, said Disney chief financial officer, Christine McCarthy. ESPN, which has been suffering from a loss of cable subscribers, saw ad revenue decline 11% in the fiscal first-quarter, McCarthy said.

Meanwhile, the studio division saw relatively flat revenues of $2.5 billion. Among the releases in the current quarter were “Thor: Ragnarok” and “Star Wars: The Last Jedi,” which has made a cumulative $1.3 billion globally at the box office. But compared with “Star Wars: The Force Awakens,” “The Last Jedi” is trailing the domestic box office haul at the same juncture by nearly $300 million.

Revenue for consumer products were also down, declining 2% to $1.5 billion, the company said.

Shortly before the earnings report, Disney announced that David Benioff and D.B. Weiss, the creators of HBO’s “Game of Thrones,” will be writing and producing a new “Star Wars” film series.

Shares of Disney rose more than 2.6% Tuesday in after-hours trading to $109 a share. It closed Tuesday up 1.4% to $106.17.

More Biz

  • FILE - In this Jan. 12,

    How to Watch the Patriots vs. Chiefs - AFC Championship

    The conference championships are set to take place Sunday, Jan. 20 ahead of Feb. 3’s Super Bowl LIII, with the top two teams in each the AFC and NFC conferences going head to head. The second game, the New England Patriots against the Kansas City Chiefs, is set to begin at 6:40 p.m. ET at [...]

  • The line of scrimmage between the

    How to Watch Rams vs. Saints Online - NFC Championship

    The conference championships are set to take place Sunday, Jan. 20 ahead of Feb. 3’s Super Bowl LIII, with the top two teams in each the AFC and NFC conferences going head to head. The first game, the Los Angeles Rams against the New Orleans Saints, is set to begin at 3:05 p.m. ET at [...]

  • MAGA Teens Taunting Native American Elder

    MAGA Hat-Wearing Teens Harassing Native American Elder Spark Condemnation From Hollywood

    The Internet erupted in outrage Saturday after a video of young men wearing MAGA hats and attempting to intimidate a Native American man at the Indigenous Peoples March in Washington D.C. went viral. The march is taking place amid the government shutdown, which is nearing the one-month mark and has interfered with many Native Americans’ [...]

  • Leonard Klady Dead: Film Journalist Was

    Leonard Klady, Veteran Film Journalist, Dies at 67

    Leonard “Len” Klady, a former Variety reporter and critic who most recently worked for Movie City News and Screen International, has died. His wife, Beverly Walker, said he had been diagnosed with cancer in November.  Klady was born in Winnipeg, Manitoba and graduated from the University of Manitoba. He was a founding member of the [...]

  • Jordan Feldstein

    Roc Nation Seeks $11 Million From Insurer in Jordan Feldstein's Death

    Roc Nation filed a federal lawsuit Friday seeking $11 million from its insurance carrier following the death of Maroon 5 manager Jordan Feldstein. Roc Nation, a joint venture of Jay-Z and Live Nation Entertainment, partnered with Feldstein’s Career Artist Management in 2016. At the time, Roc Nation says it took out a “key man” life [...]

  • 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 [...]

More From Our Brands

Access exclusive content