Disney misses expectations with lackluster quarter
The company couldn't give analysts what they wanted to see on profit or revenue.
The quarter was also dragged down because it had one less week than the year-ago period, and because of an accounting shift in the way revenue is recognized.
Disney reported an $835 million profit, or 43 cents a share, for the quarter ended Oct. 2. That's down from $895 million, or 47 cents a share, in the year-ago period.
After removing some one-time charges, profit came to 45 cents a share. That's still a penny less than what analysts were expecting.
The company blamed the drop on a shift in some revenue from the ESPN cable network to the third quarter. That shift contributed to a 9-cent hit to EPS, the company said. Post continues after video:
Disney reported revenue of $9.74 billion, a drop from $9.87 billion in the year-ago period. Analysts were expecting $9.95 billion.
The quarter gave Disney problems to the very end. The company was supposed to release its earnings after the bell, but the release inexplicably appeared on Business Wire around 3:30 p.m. EST. Oops.
The news sent Disney shares down nearly 3% to close at $35.93. The stock was essentially flat in after-hours trading.
Revenue fell 7% for Disney's cable and broadcast operations, while the parks and resorts segments saw a 1% drop. Disney said that costs were higher at its resorts, while hotel occupancy was lower.
The studio entertainment division saw a 6% revenue increase, largely due to the international success of "Toy Story 3." Consumer products sales rose 13% and interactive media sales rose 20%. But both of those categories are quite small compared to Disney's broadcast and theme park businesses.
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