Shareholders fault Disney despite Star Wars boost
Shares in Walt Disney dropped around six per cent in after-hours trading after the company missed analysts' expectations in its second fiscal quarter.
The figures
In the quarter ending 2 February, the company reported revenues of $12.97bn (£8.98bn), up four per cent year on year.
Earnings per share (EPS), meanwhile, were up 11 per cent to $1.36.
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Analysts had expected Disney to report earnings of $1.40 per share on revenue of $13.19bn, according to a Thomson Reuters consensus estimate.
Shortly after the results announcement, shares in Disney were trading down by more than six per cent at $99.80.
Why it's interesting
Breaking down the results, Disney's Studio Entertainment department was the fastest growing in terms of revenue (up 22 per cent to $2.06bn) and operating income (up 27 per cent to $542m).
Disney hailed the segment's “unprecedented winning streak at the box office”, boosted by Star Wars: The Force Awakens and Zootopia.
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Within this area, Disney said it had seen a year-on-year decrease in home entertainment figures thanks to lower sales.
It said this reflected the strong performances last year of Big Hero 6, Frozen and Marvel's Guardians of the Galaxy.
But it said this was partially offset by the distribution of Star Wars Classic titles by a third party.
What the company said
Robert A. Iger, chairman and chief executive:
We’re very pleased with our overall results in the second quarter, which marks our 11th consecutive quarter of double-digit growth in adjusted EPS. Our Studio’s unprecedented winning streak at the box office underscores the incredible appeal of our branded content, which we continue to leverage across the entire company to drive significant value. Looking forward, we are thrilled with the Studio’s slate and tremendously excited about the grand opening of the spectacular Shanghai Disney Resort.