Walt Disney Q3 Results Miss Wall Street Estimates

(RTTNews) - Media and entertainment giant Walt Disney Co. (DIS), Tuesday reported a 23 percent increase in profit for the third quarter, driven largely by growth in park and resorts as well as studio businesses. However, earnings for the quarter fell short of Wall Street estimates, as did revenues.

Burbank, California-based Disney's third-quarter profit rose to $2.92 billion or $1.95 per share from $2.37 billion or $1.51 per share last year.

Adjusted earnings for the quarter were $1.87 per share, compared with $1.58 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.95 per share.

Revenues for the quarter increased 7 percent to $15.23 billion from $14.24 billion last year. Analysts had a consensus revenue estimate of $15.34 billion.

"We're pleased with our results in the quarter, including a double-digit increase in earnings per share, and excited about the opportunities ahead for continued growth," said CEO Robert Iger.

"Having earned the overwhelming support of shareholders, we are more enthusiastic about the 21st Century Fox acquisition than ever, and confident in our ability to fully leverage these assets along with our own incredible brands, franchises and businesses to drive significant value across the entire company."

Disney has agreed to acquire 21st Century Fox (FOX, FOXA) for $71 billion. Disney will absorb Fox's storied film and television studios as well as stakes in the Sky PLC pay-television company and the Hulu video-streaming service.

Media networks segment's revenues rose 5 percent to $6.17 billion, while parks and resorts units increased 6 percent to $5.19 billion. Studio entertainment revenues jumped 20 percent to $2.88 billion and consumer products & interactive media division revenues declined 8 percent to $1.00 billion.

DIS closed Tuesday's trading at $116.56, up $0.62 or 0.53% on the NYSE. The stock, however, slipped $2.76 or 2.37% in the after-hours trade.