Disney slides after missing on revenue and ending its streaming agreement with Netflix

ESPN sc6

Disney’s second-quarter profits topped analysts’ forecast but revenue missed expectations.

The company on Tuesday said it earned $US14.24 billion in revenue, less than the estimate for $US14.42 billion according to Bloomberg. Disney earned $US1.58 per share on an adjusted basis, topping the forecast for $US1.55.

Disney’s stock fell nearly 3% in extended trading after the earnings release.

Disney also announced that it would launch an ESPN-branded streaming service for sports content in early 2018, and a Disney-branded service in 2019. Disney said it would end its agreement to release new titles for streaming on Netflix, starting with movies released in 2019.

Netflix shares fell nearly 4% after-hours following the news.

Disney said it was investing $US1.58 billion to raise its stake in BAMTech, a video-streaming company, giving it majority ownership.

More to come …

NOW WATCH: THE BOTTOM LINE: New record highs for stocks and a deep dive into Apple’s iPhone