Walt Disney Earnings, Revenues Miss Street; Shares Down 3%

(RTTNews) - Media and entertainment giant Walt Disney Co. (DIS), Tuesday reported a drop in profit for the fourth quarter, as revenues declined 3 percent. Shares of Disney slipped 3 percent in extended hours after its earnings and revenues fell short of Wall Street estimates.

Burbank, California-based Disney's fourth-quarter profit dropped to $1.75 billion from $1.77 billion last year. On a per share basis, earnings rose to $1.13 per share from $1.10 per share last year, due to lower number of outstanding shares.

Excluding special items, earnings for the quarter were $1.07 per share. On average, 27 analysts polled by Thomson Reuters estimated earnings of $1.15 per share.

Revenues for the quarter decreased 3 percent to $12.78 billion from $13.14 billion last year. Analysts had a consensus revenue estimate of $13.34 billion.

"No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company," said Robert Iger, Chairman and Chief Executive Officer. "We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value."

In August, Disney announced its plans to launch a Disney-branded direct-to-consumer streaming service in 2019.The entertainment giant also announced that it will end its distribution agreement with Netflix for subscription streaming of new releases, beginning with 2019. Disney will also launch its own ESPN-branded video streaming service in early 2018, which will feature about 10,000 sporting events each year, will have content from the MLB, NHL, MLS, collegiate sports and tennis' Grand Slam events.

Media networks segment's revenues dropped 3 percent to $5.47 billion, while parks and resorts units increased 6 percent to $4.67 billion. Studio entertainment revenues dropped 21 percent to $1.43 billion and consumer products & interactive media division revenues decreased 6 percent to $1.22 billion.

DIS closed Thursday's trading at $102.68, up $1.50 or 1.48% on the NYSE. The stock, however, dropped $3.38or 3.29% in the after-hours trade.