The Walt Disney Company reported earnings that topped expectations on Tuesday, but revenue missed.
The company also announced that it will no longer stream its movies on Netflix starting in 2019. Disney instead plans to launch in 2019 a direct-to-consumer streaming service, which will host its films exclusively.
But CEO Bob Iger told CNBC’s Julia Boorstin on “Closing Bell” that Marvel shows will stay on Netflix.
The stock fell as much as 3 percent in after-hours trading. It has since recovered some of those losses, but was still down more than 2 percent.
Here’s how the company did compared to what Wall Street expected:
- Adjusted EPS: $1.58 vs. $1.55 expected, according to Thomson Reuters
- Revenue: $14.24 billion vs. $14.42 billion expected, according to Thomson Reuters
Disney said its cable networks segment saw operating income decline 23 percent year over year amid trouble at ESPN. The sports network was plagued by higher programming costs and lower advertising revenue, as well as severance and contract termination costs.
Iger has repeatedly defended the business, previously telling CNBC that the company is “confident in ESPN’s future” and believes “live sports is still a huge driver of consumption.”
The broader media and networks segment reported operating income that missed Wall Street projections.
Here’s what Disney reported as operating income for each segment, compared with analysts’ expectations, according to StreetAccount consensus estimates:
- Media and networks: $1.84 billion vs. $1.99 billion expected
- Parks and resorts: $1.17 billion vs. $1.09 billion expected
- Studio: $639 million vs. $636.6 million expected
- Consumer and interactive: $362 million vs. $394.6 million expected
In March, Disney’s board announced it was extending Iger’s contract to July 2, 2019. The company has not yet named a successor for him.
When CNBC asked the Disney CEO if he’d run for office, Iger said he hasn’t thought much about what he will do when he leaves the company.
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