Disney reported quarterly profits and sales that missed analysts’ expectations after the closing bell on Tuesday.
The media behemoth posted adjusted earnings per share of $1.36 for its fiscal second quarter, while its revenues totaled $13 billion.
Analysts had estimated that the company posted $1.40 in adjusted earnings per share, and revenues of $13.21 billion.
Cable revenues fell 2% to $4 billion. ESPN operating incomes increased, boosted by lower programming costs and higher affiliate revenues.
But the timing of college football games outside of its fiscal quarter led to lower ad revenues.
Disney’s results come after a solid quarter for its films. Studio Entertainment revenues rose 22% to $2.1 billion compared to the same quarter last year. At the same time, operating income increased 27% to $542 million, although this could have been higher if the strong dollar did not dampen sales earned abroad.
With $73.7 million in domestic box-office sales, “Zootopia” smashed the record that “Frozen” set for the biggest opening weekend for a non-Pixar Disney animation. The Saturday box-office performance of $31.8 million was the largest ever for Walt Disney Animation Studios.
Disney shares had rallied 1.5% this year through the close on Tuesday.
This chart shows the immediate drop in after-hours trading: