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Disney's 2Q Beats Estimates Despite Lower Revenue from Movies
gvw_ap_news
By Associated Press
Published 6 years ago on
May 9, 2019

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NEW YORK โ€” Disneyโ€™s adjusted second-quarter net income declined as higher revenue from its parks was not enough to offset lower theatrical revenue.

The quarter closed just ahead of the release of the Marvel movie โ€œAvengers: Endgameโ€ in April. The movie has quickly become one of the most successful of all time.

However, the entertainment giantโ€™s results still beat Wall Street expectations.

The lower theater revenue in the quarter that ended March 30 was due to tough comparisons from a year ago, when the company released โ€œBlack Pantherโ€ and โ€œStar Wars: The Last Jedi.โ€ During the same period this year Disney released โ€œCaptain Marvel.โ€

The quarter closed just ahead of the release of the Marvel movie โ€œAvengers: Endgameโ€ in April. That movie had become one of the most successful movies of all time.

Net income for the quarter ended March 30 jumped 85% to $5.34 billion, or $3.55 per share. The companyโ€™s bottom line got a big boost from a non-cash gain from its acquisition of controlling interest in streaming service Hulu.

Revenue Edged up 3% to $14.92 Billion

Adjusting for that and other one-time items, Disneyโ€™s quarterly net income came to $1.61 per share, down from $1.84 a share a year ago. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.59 per share in the latest quarter.

Revenue edged up 3% to $14.92 billion. According to FactSet, analysts had expected $14.56 billion.

Disney, which is based in Burbank, California, closed on its $71 billion acquisition of Foxโ€™s entertainment assets during the quarter. It is using Fox assets, including โ€œThe Simpson,โ€ โ€National Geographicโ€ and other properties to help launch its streaming service Disney Plus in November. โ€œAvengers: Endgameโ€ is slated to hit the service in December.

Its upcoming theatrical releases over the course of 2019 include live action versions of โ€œAladdin,โ€ and โ€œThe Lion King,โ€ as well as โ€œMaleficent: Mistress of Evil,โ€ โ€Toy Story 4,โ€ โ€Frozen 2โ€ณ and โ€œStar Wars: The Rise of Skywalker.โ€

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