Walt Disney Co Misses Earnings Estimates

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Walt Disney released the earnings results from the second quarter of its fiscal 2016 after closing bell tonight, posting adjusted earnings of $1.36 per share or $2.1 billion on $13 billion in revenue. Analysts had been expecting adjusted earnings of $1390 per share on $13.2 billion in revenue.

Walt Disney’s earnings edge higher

Reported earnings were $1.30 per share, a 6% year over year increase from the year-ago quarter’s $1.23 per share. Media Networks revenues edged lower from $5.81 billion last year to $5.79 billion this year, while Parks and Resorts revenue fell from $3.76 billion to $3.9 billion. Studio Entertainment Consumer Products & Interactive Media revenue declined from $1.21 billion to $1.19 billion.

Walt Disney Chairman and CEO Robert Iger noted that the April quarter marks the company’s 11th consecutive quarter of double-digit adjusted earnings growth.

“Our Studio’s unprecedented winning streak at the box office underscores the incredible appeal of our branded content, which we continue to leverage across the entire company to drive significant value, said Iger in a statement. “Looking forward, we are thrilled with the Studio’s slate and tremendously excited about the June 16th grand opening of the spectacular Shanghai Disney Resort.”

ESPN revenue surprises

ESPN revenues increased on the back of lower programming costs and higher affiliate revenues, Walt Disney said, although a decline in ad revenue partially offset the increase at ESPN. Analysts had been expecting a decline going into tonight’s report. The company said Star Wars: The Force Awakens continued to boost its theatrical distribution results, while Zootopia‘s release during the quarter also helped drive theatrical revenue. It also saw growth in TV/ streaming video-on-demand distribution.

Walt Disney’s Consumer Products & Interactive Media segment also received a boost from Star Wars: The Force Awakened as movie merchandise boosted sales. In the Parks and Resorts segment, the company noted an increase in sales in its domestic operations but a decline in revenue from its international operations.

Shares of Walt Disney stock plunged in after-hours trades, falling by more than 6% to as low as $100.15 per share following tonight’s disappointing earnings release.

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