Disney shares slumped 7% in early trading on Wednesday after the company reported a miss on revenues.
On Tuesday evening, Disney reported third-quarter revenues of $US13.1 billion, up 5.1%, missing Bloomberg’s consensus forecast for $US13.2 billion. Earnings came in at $US1.45 a share excluding items, beating the forecast for $US1.41.
The company also slashed its outlook for profits in the cable business. It had expected profit growth in the single-high-digit range between 2013 and 2016, but it now expects returns in the mid-single-digit range, according to Bloomberg.
ESPN also experienced losses in the quarter, and the strong dollar has dented revenues.
For the year, the stock is still up 19%, and 30% for the past 12 months. It touched an all-time high on Tuesday.
Here’s a chart showing the slump on Wednesday: