Disney reported quarterly earnings that beat analysts’ expectations on Tuesday, but revenue fell short of Wall Street estimates.
The company posted first-quarter earnings per share of $1.55 on $14.78 billion in revenue. Disney’s results represent a 3 percent year-over-year decline in revenue and a 10 percent decline in earnings per share.
Analysts expected the media giant to post fiscal first-quarter earnings of $1.49 per share on $15.26 billion in revenue, according to Thomson Reuters consensus estimates.
The stock initially dropped 2 percent in after-hours trading, but was last seen about 1.4 percent lower.
The entertainment titan also reported revenue that missed expectations in most of its segments.
Disney’s consumer products and interactive media brought in about $1.48 billion in revenue, missing Street expectations for $1.75 billion, according to StreetAccount. The company said the segment faced tough comparisons to the success of its merchandise for “Frozen” and “Star Wars: The Force Awakens” in the year-ago period.
Revenue from the company’s media and networks segment came in at $6.23 billion. That figure is below analyst projections for $6.42 billion, according to StreetAccount.
Disney also said operating income for the segment declined 11 percent from the comparable year-ago period, citing higher programming costs and lower advertising revenue at ESPN. That decrease, however, was partially offset by affiliate revenue growth,” the company said.
Disney’s parks and resorts segment also missed the mark. The company reported revenue of $4.56 billion, while analysts expected $4.59 billion according to StreetAccount. Disney said the segment’s growth was impacted by Hurricane Matthew and “the timing of the New year’s holiday” relative to its fiscal calendar.
The company’s studio segment brought in $2.52 billion in revenue and $842 million in operating income. Revenue was in line with analyst expectations, but operating income beat analyst expectations for $832.5 million in operating income, according to StreetAccount consensus estimates.
In January, Disney said it had more than $7.6 billion in global box-office gross, buoyed by lucrative franchise films like “Rogue One: A Star Wars Story,” “Captain America: Civil War” and “Finding Dory.” The company had box-office gross revenue of $3 billion domestically and $4.6 billion overseas.
Despite stellar performances at the box office, some investors have lingering concerns about ESPN’s declining subscribers.
Disney CEO Bob Iger defended the cable sports network, saying while ESPN faces “near-term issues,” “long-term revenues are going to be just fine.”
In November, Iger forecast modest growth for Disney in the near term, but said it would see more robust growth in the future, as the media giant delivers contently directly to consumers, boosting digital revenue.
Investors are also waiting on succession announcements for Iger, who has less than two years left until his planned retirement.
The stock set a new 52-week intraday high of $111.99 on Feb. 1. The Dow component has surged about 16 percent in the past 12 months.
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Programming note: Disney Chairman and CEO Bob Iger is scheduled to appear exclusively on CNBC’s “Fast Money” on Tuesday at 5:45 p.m., ET.
— CNBC’s Julia Boorstin contributed to the report.