Disney missed Wall Street expectations in its fiscal third-quarter earnings report on Tuesday. The stock fell 3.8% in after-hours trading.
Here are the key numbers:
- Earnings per share: $1.35 vs. $1.75 per share, according to Refinitiv estimates
- Revenue: $20.25 billion vs. $21.47 billion, per Refinitiv
The company’s Studio Entertainment segment reported revenues of $3.8 billion during the quarter, representing a 33% increase from the same period one year ago.
Disney’s Media Networks unit reported revenue of $6.7 billion, which is a 21% rise from the same quarter one year earlier. The company’s Parks unit posted revenue of $6.6 billion during the quarter, representing a 7% rise from the third quarter of 2018.
The direct-to-consumer segment saw revenue of $3.86 billion during the period, with operating losses increasing to $553 million from $168 million. The company blamed the increased losses on Hulu and increased investments in ESPN+ and Disney+ streaming services.
Disney+ is slated to launch in November at a cost of $6.99 per month, or $69.99 per year. The service will feature content from Disney, Pixar, Marvel, Star Wars, and more.
Last month, Disney’s “Avengers: Endgame” became the highest-grossing film of all time, raking in $2.79 billion at the global box office and surpassing previous chart-topper “Avatar’s” record of $2.7897. The success of “Endgame,” as well as other titles like “Captain Marvel,” “The Lion King,” “Toy Story 4” and “Aladdin,” could help Disney earn more than $9 billion at the global box office this year.
This story is developing.