Disney earnings disappoint, stocks plunge
The entertainment giant reported earnings that fell short of the lowest estimates as the company takes the TV-streaming plunge.
Earnings per share came in at $1.35, below $1.75 expected, shares sharply lower in after-hours trading
Stocks impacted: The Walt Disney Company (DIS)
The results were weighed by investments in its Disney+ online-video app and its recent takeover of 21st Century Fox. Excluding certain items, Disney earned $1.35 per share for the quarter that ended in June, below average analyst estimates of $1.75 per share. As such, earnings per share for the quarter decreased 28%. Total revenue of $20.2 billion undershot the consensus estimate for $21.4 billion. As a reminder, the company launches Disney+ in November, while in May, it struck a deal with Comcast to take operational control of Hulu. The company’s shares dropped 5% in after-hours trading to $135 after a close with gains of 2.58%. The stock rose nearly 30% this year and registered an all-time high last week.
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