Walt Disney Co. missed Wall Street estimates on earnings and revenue in the fourth quarter.
The Burbank entertainment and media giant reported on Thursday net income of $1.7 billion ($1.13 a share) on revenue of $12.8 billion for the quarter ending Sept. 30. That compares with net income of $1.8 billion ($1.10) in the same period a year earlier.
Analysts on average expected earnings of $1.15 on revenue of $13.3 billion, according to Thomson Financial Network.
Out of Disney’s four business units, parks and resorts posted the only revenue increase with a bump of 6 percent, going to $4.7 billion from $4.4 billion in the same period a year earlier. Studio entertainment revenue decreased in the third quarter by 21 percent to $1.4 billion, while consumer products and interactive media dropped 6 percent. Media networks revenue went down 3 percent to $5.5 billion.
Studio entertainment revenue was impacted by a decline in theatrical distribution sales and by the write off of an animated feature in development during the quarter that the studio will not release.
Chief Executive Robert Iger said the company will continue to invest for the future and take smart risks, as with its first direct-to-consumer streaming service starting next year.
“No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company,” Iger said in a prepared statement.
Results were released after the market closed. Shares of Disney (DIS) closed up $1.50, or less than 2 percent, to $102.68 on the New York Stock Exchange.