- Disney reported third-quarter financial results after the market close on Tuesday that missed analyst expectations for both revenue and profit.
- The conglomerate’s movie studio reported revenue of $US3.86 billion during the period, falling short of the $US4.56 billion estimate from analysts.
- Shares of Disney fell 4% on the results.
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Disney’s third-quarter results missed Wall Street’s forecasts despite the media giant’s movie studio breaking several box office records this year.
Here are the key numbers:
- Revenue: $US20.25, compared to $US21.44 billion expected by analysts.
- Earnings per share: $US1.35, compared to $US1.75 expected by analysts.
- Net income: $US1.45 billion, compared to $US2.9 billion expected by analysts.
“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” CEO Bob Iger said in a statement.
Shares of Disney fell 3.51% on the results.
Disney’s studio entertainment division recorded revenue of $US3.86 billion, as the company released several box office hits during the quarter including “The Lion King,” “Aladdin,” and “Avengers: Endgame.” Analysts expected studio revenues to be $US4.56 billion.
Marvel’s “Avengers: Endgame” rose to become the highest-grossing movie of all time with more than $US2.79 billion in worldwide ticket sales in July. Disney’s box office revenues also surpassed $US8 billion for the year, breaking the record for total annual box office sales for a movie studio.
Amid the titles’ successes, Disney recorded corporate expenses and restructuring charges linked to its integration with 21st Century Fox.
Media networks generated $US6.7 billion in revenue for the period, and Disney’s parks, experiences, and products segment accounted for $US6.57 billion in sales. Direct-to-consumer and international revenues came in at $US3.85 billion, an increase of more than 100% from the same period last year.
The results come a few months before Disney is expected to roll out Disney Plus, a streaming platform that will include movies from the Marvel, Star Wars, and Pixar franchises, in addition to a variety of TV series from the company’s vast content library. The service is expected to cost $US6.99 per month and will include content from Disney’s $US71 billion acquisition of Fox.
Disney was up 24.6% year-to-date through Tuesday’s close.