Disney's earnings disappoint Wall Street
BURBANK, Calif. - Disney (DIS) reported quarterly earnings Tuesday that fell short of forecasts, and announced it is discontinuing its Infinity line of video games.
The company based in Burbank, California, said it had second-quarter earnings of $2.14 billion, or $1.30 per share. Earnings, adjusted for nonrecurring costs, came to $1.36 per share.
The adjusted results, which exclude the $147 million charge -- or 6 cents per share -- for shutting down the Infinity division, fell short of Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $1.40 per share.
The entertainment company posted revenue of $12.97 billion in the period, also falling short of Street forecasts. Six analysts surveyed by Zacks expected $13.26 billion. Analysts were expecting better performance at the parks and in the consumer products division that houses the Infinity line.
Disney shares tumbled 5.3 percent, or $5.70, to $100.90 in after-hours trading following the results' release, taking them into negative territory for the year.
Disney's film studios, however, were a bright spot. The company's reported $2.1 billion in net profit was boosted by a 27 percent gain in studio profits to $542 million. CEO Bob Iger touted "our studio's unprecedented winning streak at the box office."
Just eight years ago, it was dead last in box-office receipts among the six major Hollywood studios. This year, it's on pace for a record-breaking No. 1 spot. Disney is expected to get big assists from movies like "Captain America: Civil War," which kicked off the summer season last weekend, and "Rogue One," a second installment in its reinvigorated "Star Wars" series that's due this winter.
Some analysts expect the studio to post nearly $3 billion in profit this year, after hitting near $2 billion last year.