Disney’s Overall Earnings Fall Short Of Predictions For Q3
Despite record earnings at the box office, Disney reported less than expected earnings during the third quarter.
Disney Earnings Fall Short
CNBC’s Annie Palmer reported:


Photo credit: CNBC.com
Disney missed Wall Street expectations in its fiscal third-quarter earnings report on Tuesday. The stock fell 3.7% 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
Disney blamed the earnings miss on the ongoing integration of Fox’s entertainment assets, which it acquired in a $71 billion deal that closed in March.
Two Strong Positives In Disney Earnings Report
However, CNBC also reported positives:
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, marking a 7% rise from the third quarter of 2018.
Disney also touted it’s upcoming Disney+ debut as a reason for optimism.
In early reporting, analysts pointed out Q3’s traditionallly slower pace; some saying that long term this is not a problem for Disney.
In fact, one analyst on CNBC said — despite the Disney earnings shortfall — this might be the time to buy.
Watch:
Galaxy’s Edge Attendance
Disney also admitted to some disappointment with attendance at Disneyland’s version of Star Wars: Galaxy’s Edge.
Bloomberg’s Christopher Palmeri reported:
Walt Disney Co. opened the most highly anticipated theme-park attraction in the company’s history — and attendance fell.
Profit at the company’s domestic resorts slumped in the latest quarter, which was marked by the ballyhooed opening of Star Wars: Galaxy’s Edge, the largest addition ever to the Disneyland resort in Anaheim, California. A second version of the space-themed land opens in Florida this month.
The shortfall was a shock to investors who were counting on Disney’s market-dominating theme parks and films to shoulder the burden of growth as the company goes head to head with Netflix Inc. in streaming. Spending on movies and TV shows for new online services led to a $553 million loss in Disney’s direct-to-consumer division. Disney shares fell 2.8% in pre-market trading.
However, Analyst Tuna Amobi stuck with a “strong-buy recommendation.”
I’m listening to Amobi and my three shares are staying put – and maybe some siblings will join them.