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Saturday, November 26, 2022
HomeNewsEconomyWalt Disney Misses Expectations for First Time in 8 Quarters, Despite “Avengers: Age of Ultron”

Walt Disney Misses Expectations for First Time in 8 Quarters, Despite “Avengers: Age of Ultron”

Water-Tower-The-Walt-Disney-Co-HQ
Water-Tower-The-Walt-Disney-Co-HQ

The famous water tower at Walt Disney Co HQ. (Photo: REUTERS)

Walt Disney Co (NYSE:DIS) revenue missed Wall Street expectations for the first time in eight quarters, despite the success of “Avengers: Age of Ultron”. The report pushed shares down more than 2 percent in extended trading.

Walt Disney Co reported a drop of operating income at its parks and resorts outside North America, fueled by lower attendance and occupied room nights at their Hong Kong Disneyland Resort, as well as higher operating costs at Disneyland Paris and Hong Kong Disneyland Resort. However, total operating profit at its theme parks, the largest contributor to revenue and profit, rose 9 percent to $922 billion in the third quarter ended June 27.

Operating income at the company’s largest unit, media networks, rose 4 percent to $2.38 billion in the quarter, as cable channels brought in higher fees from pay TV distributors. The media networks segment includes sports channel ESPN, the Disney Channels and the ABC broadcast network.

Disney’s studio business recorded a profit of $472 million, up from $411 million a year earlier. The company’s overall net income climbed to $2.48 billion, or $1.45 per share, from $2.25 billion, or $1.28 per share. Excluding items, the company earned $1.45 per share. Revenue rose to $13.10 billion from $12.47 billion.

Analysts on average had expected a profit of $1.42 per share on revenue of $13.23 billion, according to Thomson Reuters I/B/E/S.

Disney shares fell 2.01 percent to $119.25 in after-hours trading on Tuesday. The stock had risen 29 percent this year, making it the best performing among the 30-member Dow Jones industrial average (INDEXDJX:.DJI) this year.

Written by
Staff Writing Group

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