LOS ANGELES (Reuters) -Walt Disney reported on Wednesday quarterly earnings that exceeded Wall Street expectations, buoyed by the success of animated Pixar film “Inside Out 2”, which helped overcome a profit decline at theme parks. #DisneyEarningsProfit
April-June operating income nearly tripled at its Entertainment unit, with the combined streaming businesses of Disney+, Hulu and ESPN+ posting a profit for the first time.
But the company’s shares slipped 0.8% before the bell as its experiences segment that includes parks and consumer products – and makes up just over half of profit – recorded an operating income drop of 3%. Disney said “moderation” of demand at its U.S. parks could continue through the next few quarters.
Operating income for the unit is likely to fall by “mid single digits” in the July-September quarter compared with the same period a year prior, Disney said.
Adjusted earnings-per-share reached $1.39 for Disney’s fiscal third quarter, topping analyst estimates of $1.19, LSEG data showed. Revenue rose 4% to $23.2 billion, beating forecasts of $23.1 billion.
Chief Executive Bob Iger touted success in the entertainment division, where Disney’s combined streaming businesses turned a profit a quarter ahead of its projections.
“We are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets,” Iger said in a statement.
Iger is working to rebuild Disney after billions of dollars in loss from streaming efforts, the decline of traditional television and a rough patch for its storied film studio. #DisneyEarningsProfit
“Inside Out 2” notched $1.6 billion in global ticket sales and “Deadpool & Wolverine,” which debuted in the current quarter, has brought in more than $850 million.
Additionally, while Disney’s earnings have been robust, the profit slip in parks is a concern. Thus, the company must address these issues to sustain overall Disney earnings profit.
