Walt Disney Co. missed Wall Street expectations of adjusted earnings and revenue in the fiscal third quarter. The Burbank entertainment and media giant reported on Tuesday adjusted net income of $3.3 billion ($1.35 a share) in the quarter ending June 29, compared with adjusted net income of $3.9 billion ($1.87) in the same period a year earlier. Revenue increased by 33 percent to $20.2 billion. Analysts on average expected earnings of $1.75 on revenue of $21.5 billion, according to Thomson Financial Network. All four business divisions reported increases of revenue, with the direct-to-consumer and international unit reporting a boost of more than 100 percent to $3.9 billion as it included income from 21st Century Fox businesses. Disney closed on its acquisition of Fox at the end of March. The filmed entertainment segment had a revenue increase of 33 percent to $3.8 billion, helped by the strong box office of “Avengers: Endgame,” “Aladdin,” and “Toy Story 4.” Chief Executive Robert Iger said the third quarter results reflect efforts to integrate 21st Century Fox assets into the company. “The incredible popularity of Disney’s brands and franchises positions us well as we launch Disney+ (in the fall), and the addition of original and library content from Fox will only further strengthen our direct-to-consumer offerings,” Iger said in a statement. Shares of Disney (DIS) closed up $3.57, or more than 2 percent, to $141.87 on the New York Stock Exchange.
Disney Disappoints Despite Revenue Gains
