Disney Misses Wall Street Expectations

Walt Disney Co. missed Wall Street expectations on earnings in the fiscal second quarter while matching on revenue. The Burbank entertainment and media giant reported adjusted net income of $1.36 a share in the quarter ended April 2. Analysts on average expected income of $1.40 cents a share, according to Thomson Financial Network Disney’s net income was $2.1 billion ($1.30 cents a share), compared with net income of $2.1 billion ($1.23 cents) in the same period a year earlier. Revenue increased 4 percent to $13 billion. Analysts were looking for revenue of $13.2 million Studio entertainment led the four business divisions with the highest revenue increase at $2.1 billion, a 22 percent increase from the prior year. The increase was attributed to the strong box office of “Star Wars: The Force Awakens” and “Zootopia” during the quarter. Media networks revenue was flat while parks and resorts revenue increased by 4 percent to $3.9 billion due to higher spending at parks and increases in admission prices and for resort hotel rooms. Consumer Products & Interactive Media revenues decreased 2 percent to $1.2 billion. Chief Executive Bob Iger was pleased with the results, which marked the 11th consecutive quarter of double-digit growth in adjusted earnings per share. “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,” Iger said in a prepared statement. The company released its results after market close. Shares closed up $1.26, or just more than 1 percent, to $106.60 on the New York Stock Exchange. The price dropped by more than $6 in after-hours trading following the release of the quarterly earnings.