The stock of Walt Disney Co. (DIS) is lower by 1% after the entertainment giant reported mixed financial results for its fiscal third quarter.
The company reported earnings per share (EPS) of $1.61 U.S., which topped consensus estimates of $1.47 U.S.
However, revenue of $23.65 billion U.S. was lower than the $23.73 billion U.S. forecast on Wall Street. It was the first time Disney missed expectations for its revenue since spring 2024.
Sales were up 2% from a year earlier.
Management blamed the mixed results on its legacy television networks, which continue to be a drag on the company and offset growth in its streaming business and theme parks.
Despite the uneven showing, Disney raised its fiscal 2025 guidance, saying it now expects earnings of $5.85 U.S., an increase of 18% from fiscal 2024.
The Disney+ streaming unit saw revenue rise 6% to $6.18 billion U.S. in the quarter. The flagship streaming service added 1.8 million subscribers, bringing its total to nearly 128 million.
However, the entertainment segment as a whole was weighed down by the traditional TV business, which saw revenue fall 15% to $2.27 billion year-over-year.
Domestic revenue for sports network ESPN increased 1% to $3.93 billion U.S., while its domestic operating income dropped 7% to $1.01 billion U.S.
ESPN just announced a deal with the National Football League (NFL) in which the pro-football league will take a 10% stake in the company.
Revenue for Disney’s experiences segment, which includes theme parks, resorts and cruises, increased 8% to $9.09 billion U.S. during Q2.
DIS stock has risen 7% this year to trade at $118.32 U.S. per share.
