The Walt Disney Co. Tuesday reported a 3 percent drop in revenue during the second quarter, compared to the same period a year ago, but it posted per-share earnings that bested Wall Street estimates.
The Burbank-based company reported a 15 percent increase in diluted earnings per share, at $1.50, up from $1.30 in the same quarter of last year. Various analysts had predicted the company would report earnings of about $1.41 to $1.45 per share.
The company reported second-quarter revenue of $13.3 billion, slightly below estimates but still 3 percent ahead of the second quarter of 2016.
“Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our Studio and Parks and Resorts,” said Disney Chairman/CEO Robert Iger. “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,” he said.
Disney’s Studio Entertainment sector actually posted a 1 percent decline in revenue from the second quarter of 2016, despite the strong box office performance during the quarter of “Rogue One: A Star Wars Story” and “Beauty and the Beast.”
The company’s Media Networks saw a 3 percent jump in revenue but a 3 percent drop in operating income, attributable primarily to increasing programming costs from sports-network ESPN. Those losses were partially offset by increases in operating income at the Disney Channels and Freeform.
Disney’s Parks and Resorts sector saw a 9 percent jump in revenue and a 20 percent increase in operating income, compared to the same quarter a year ago.
— City News Service
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