Walt Disney Co. missed Wall Street estimates on adjusted earnings and revenue for the company’s fiscal fourth quarter.
The Burbank entertainment and media giant reported on Thursday net income of $1.8 billion ($1.10 a share) for the quarter ending Oct. 1, compared with net income of $1.6 million (95 cents) in the same period a year earlier. Revenue decreased 3 percent to $13.1 billion.
Earnings adjusted to exclude items affecting comparability remained at $1.10.
Analysts on average expected earnings of $1.16 on revenue of $13.5 billion, according to Thomson Financial Network.
The calendar, however, affecting the results, as the prior year’s fourth quarter and full fiscal year had an additional week included in it.
Out of the company’s four business units, studio entertainment showed the highest revenue increase for the quarter to $1.8 billion from $1.78 billion in the same period a year earlier although operating income decreased by 28 percent due to a drop in theatrical distribution reflecting the lower-than-expected performance of “Pete’s Dragon” and “Queen of Katwe.”
Media networks took a hit as cable advertising revenue declined and parks and resorts showed flat revenue as attendance dropped at both U.S. and overseas theme park.
Chief Executive Robert Iger called the completed fiscal year one of the most successful in the company’s history, which included the opening of the Shanghai Disney Resort and the studio’s $7.5 billion in total box office.
“We remain confident that Disney will continue to deliver strong growth over the long-term as we further strengthen our brands and franchises, our technological capabilities and our international presence,” Iger said in a prepared statement.
Results were released after the market closed. Shares closed up 38 cents, or less than a percent, to $95.02 on the New York Stock Exchange.