Walt Disney 3Q F17 earnings were released after closing bell, and the company reported adjusted earnings of $1.58 per share on $14.24 billion in revenue. Analysts had been expecting earnings of $1.55 per share on $14.46 billion in revenue. In last year’s third fiscal quarter, the company reported $14.28 billion in revenue and adjusted earnings of $1.62 per share.

Walt Disney 3q f17 earnings

Walt Disney 3Q F17 earnings

On a diluted basis, Walt Disney 3Q F17 earnings fell 5% year over year to $1.51 per share from $1.59 per share in last year’s third fiscal quarter.

Disney’s Media Networks revenues fell to $5.9 billion to $5.87 billion, while its Parks and Resorts revenue ticked higher to $4.9 billion from $4.4 billion. Studio Entertainment revenues fell to $2.4 billion from $2.8 billion last year, while Consumer Products & Interactive Media revenues fell to $1.09 billion from $1.15 billion last year.

Cable Networks revenues fell 3% year over year as operating income plunged 23% due to continued declines at ESPN. Broadcasting revenues rose 4% year over year, although lower ad revenue drove a 22% decline in operating income for the segment. Shanghai Disney Resort and Disneyland Paris drove operating income growth in the company’s Parks and Resorts segment. Lower results from the company’s theatrical and home entertainment distribution drove Studio Entertainment operating income lower on a difficult year-over-year comparison due to the release of Star Wars: The Force Awakens last year.

Disney to end streaming deal in 2019

Also today, Walt Disney announced that it will end its streaming deal with the content it releases in 2019. As a result of that news, Netflix shares dropped off sharply in after-hours trading today.

“Today we announced a strategic shift in the way we distribute our content,” Disney Chairman and CEO Robert Iger said in a statement. “The media landscape is increasingly defined by direct relationships between content creators and consumers, and our control of BAMTech’s full array of innovative technology will give us the power to forge those connections, along with the flexibility to quickly adapt to shifts in the market.”

After Walt Disney 3Q F17 earnings were released, the company’s stock dropped more than 3% to as low as $103.69 in after-hours trades.