Disney Beats Estimates on Earnings, Misses on Revenue

Walt Disney Co. beat Wall Street estimates on earnings for the fiscal first quarter but fell short in revenue projections. The Burbank entertainment and media giant on Tuesday reported net income of $2.5 billion ($1.55 a share) on revenue of $14.8 billion in the quarter ended Dec. 31. That compares to net income of $2.9 billion ($1.73) in the same period a year earlier. Analysts on average expected earnings of $1.50 on revenue of $15.3 billion, according to Thomson Financial Network. Out of Disney’s four business units only parks and resorts posted a positive revenue increase, going to $4.6 billion from $4.3 billion in the same period a year earlier. The company attributed this to higher spending by visitors and cutbacks at its domestic and international theme parks. Studio entertainment revenue decreased in the first quarter by 7 percent to $2.5 billion mainly due to lower sales of home entertainment products and the $1 billion worldwide box office of “Rogue One: A Star Wars Story” compared with the $2 billion global box office of “Star Wars: The Force Awakens” from the first quarter of the prior fiscal year. “With our proven strategy and unparalleled collection of brands and franchises, we are extremely confident in our ability to continue to drive significant value over the long term,” Chief Executive Robert Iger said in a prepared statement. Disney released its earnings after the market close. Shares closed Tuesday down 57 cents, or less than a percent, to $109 on the New York Stock Exchange.