Earnings per share at Walt Disney for the quarter were $1.87 while analysts were expecting $1.95. Revenue reached $15.23 billion but forecasters were expecting revenue to be $15.34 billion.
For the same quarter one year ago, adjusted earnings per share were $1.58 and on $14.24 billion in revenue.
On the news, Disney shares reacted negatively dropping by 2% but shortly after could be seen edging higher and finally parring losses.
Despite the miss on both the top and bottom lines, the giant of the entertainment world saw solid growth in its broadcast, parks and studio units.
Its revenue in the studio unit grew by 20% compared to the same period one year ago to over $2.88 billion, driven by its strong performances at the box office including Incredibles 2 and Avengers: Infinity War.
Both of those movies crossed $1 billion in global box offices receipts. Avengers: Infinity War set an all-time record for the opening weekend both in North America and globally and reached the $1 billion mark in only 11 days, which is the fastest pace in movie history.
Disney’s Media and Networks posted revenue of $6.16 billion while analysts were expecting $6.10 billion. The Parks and Resorts unit posted $5.19 billion in revenue while analysts were expecting $5.28 billion. The Studio took in $2.88 billion while forecasts were for $2.89 billion, and its Consumer and Interactive generated $1 billion compared to a forecast of $1.11 billion.
Revenue in the parks business saw an increase year over year of 6%, but its operating incomes soared by 15% compared to last year ending at $1.34 billion. That surge, said Disney was due to guests spending higher amidst higher room rates and ticket prices as well as an increase in spending on merchandise and food and beverage.
The broadcasting business saw year over year growth of 43% in its operating incomes ending the quarter at $361 million amidst more program sales, revenue growth from affiliates and an increase in revenue from network advertising.
ESPN+ was launched in April by Disney, the streaming service that is sports focused remains in its infancy, but CEO Bob Iger indicated during a conference call that it was already showing strong conversion rates from the free trial stage to paid subscriptions.