Shares were down 6.32% at $114.00 at 10:19 GMT in pre-market trading on Wednesday.
Advertisement
Walt Disney reported net income of $2.48 billion for the third quarter, which is an increase of 11% from a year ago.
Barclays said the earnings report is “likely to be perceived as a disappointment” as Disney “reduced guidance for fiscal 2016, seemed to talk down Star Wars expectations, and guided to the new park in Shanghai not contributing anything to (the) bottom line next year”.
The weaker euro compared to a year earlier cut revenue at the Disneyland Paris theme park by about $100 million, Chief Financial Officer Christine McCarthy said on a conference call. Although they are still made available through traditional distributors like DirecTV and Comcast, the consumer offerings allow the channels to reach people who don’t subscribe to big pay TV packages.
The company’s Marvel superhero mash-up, “Avengers: Age of Ultron“, brought strong ticket sales to Disney with the film making over $1.3 billion at the global box office since May.
The company set a profit record for the quarter, but its media networks business, made up of broadcast and cable TV assets, posted a lackluster gain of 4 percent in operating income and 5 percent in revenue.
Walt Disney Co. had a mixed third quarter with a strong performance in feature films but only single-digit growth in the media networks and theme park businesses. Wall Street was expecting $13.2 billion.
Shares of Disney stock fell nearly 9 percent at times on Wednesday, a decline CNN Money attributed to worries about ESPN.
Media Networks: Media networks revenues for the quarter increased by five per cent to $5.8 billion and segment operating income increased by four per cent to $2.4 billion.
Advertisement
Profits in consumer products, from licensing Disney characters such Mickey Mouse and Iron Man to toymakers and other manufacturers, grew 27 percent to $348 million. According to CNN Money, the 26 analysts offering 12-month price forecasts for Disney have a median target of $125.00, with a high estimate of $150.00 and a low estimate of $98.00.
