Walt Disney Q2 Profit Tops Street, But Revenues Miss

(RTTNews) - Media and entertainment giant Walt Disney Co. (DIS), Tuesday reported an increase in profit for the second quarter, as revenues rose on strong performance of theme park segment and on blockbuster success of "Beauty and the Beast." Earnings of Disney trumped Wall Street estimates, but revenues fell short of expectations.

Burbank, California-based Disney's second-quarter profit rose to $2.39 billion or $1.51 per share from $2.14 billion or $1.31 per share last year.

Excluding special items, earnings for the quarter increased to $1.50 per share from $1.36 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.41 per share.

Revenues for the quarter grew 3 percent to $13.34 billion from $12.97 billion last year. Analysts had a consensus revenue estimate of $13.45 billion.

In 2017, Disney has had two releases one in the second-quarter, Beauty and the Beast, which has grossed over 1 billion worldwide, while Guardians of Galaxy Vol. 2 was released in the US last week, and is also expected to over a billion dollars.

Media networks segment's revenues gained 3 percent to $5.95 billion, while parks and resorts units climbed 9 percent to $4.30 billion. Studio entertainment revenues dropped 1 percent to $2.03 billion and consumer products & interactive media division revenues decreased 11 percent to $1.06 billion.

"Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our Studio and Parks and Resorts," said Robert Iger, Chairman and Chief Executive Officer. "Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth. We're pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term."

In March, Walt Disney extended Robert Iger's contract as Chairman and Chief Executive Officer to July 2, 2019. The third time Iger's contract has been extended.

DIS closed Tuesday's trading at $112.07, up $0.65 or 0.58%, on the NYSE. The stock, however, slipped $1.61 or 1.44% in the after-hours trade.