Disney Beats Estimates on Strong Movie Slate

Walt Disney Co. beat Wall Street estimates on adjusted earnings and revenue for the company’s fiscal third quarter. The Burbank entertainment and media giant reported on Tuesday net income of $2.6 billion ($1.59 a share) for the quarter ending July 2, compared with net income of $2.5 million ($1.45) in the same period a year earlier. Revenue increased 9 percent to $14.3 billion. Earnings adjusted to not include charges connected with shutting down international film operations were $1.62. Analysts on average expected earnings of $1.61 on revenue of $14.2 billion, according to the Thomson Financial Network. Out of the company’s five business units, studio entertainment showed the highest revenue increase for the quarter to $2.8 billion from $2 billion in the same period a year earlier. This was attributed to the summer film slate that included “Captain America: Civil War,” “Jungle Book” and “Finding Dory” and the home entertainment release of “Star Wars: The Force Awakens.” “Our results are evidence that our asset mix is strong, as is our ability to execute in ways that enhance the Disney brand and create value for our shareholders while we invest for future growth,” Chief Executive Robert Iger said in a prepared statement. Shares closed up 92 cents, or just less than 1 percent, to $96.67 on the New York Stock Exchange.