An unexpected turn of events for Disney
The giant in the entertainment industry reported their third-quarter results. Unfortunately, for them, it was unfavourable as it was below the consensus expectations of the analysts.
On Tuesday, the shares plunged about 3.7% in after-hours trading after the announcement. Both earnings and revenue were below the estimated values.
According to the report, the revenue was $20.25 billion versus the expected revenue of $21.44 billion, whereas the adjusted earnings were $1.35 per share versus the expected amount of $1.71 per share.
Disney’s acquisition of Twenty-First Century Fox cost them $71 billion and according to the company, their earnings fell short due to the said acquisition.
“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” Disney chairman and CEO, Bob Iger, said in a statement.
Although the revenue for the quarter was higher than the revenue reported by the company last year, it was below the estimates for the third-quarter, this year.
“We feel that we can focus more on quality than on quantity. If you compare us to Netflix, we’re going to have far less products than they do, but we’re relying on the strength of our brands and the fervor that fans of those have for the products that we make under those brand umbrellas,” Iger said during a call with investors on August 06, 2019.
The share price of Disney (NYSE: DIS) closed at $141.87 on Tuesday.
(Reference: Deadline, Yahoo Finance, CNBC, The Wrap)
(Image source: AP/Shutterstock)