Seeking Alpha

Disney -3% as Q3 growth falls short of consensus

|About: The Walt Disney Company (DIS)|By:, SA News Editor

Walt Disney (NYSE:DIS) shares have dropped 3% after fairly heavily missing expectations with fiscal Q3 earnings despite revenues that grew by a third (including Hulu and Fox).

EPS fell 59% to $0.79 on a GAAP basis; excluding items affecting comparability, it dropped 28% to $1.35.

Revenues rose 32.9% to $20.24B with the incorporation of Fox and Hulu results.

Net income from continuing operations dropped to $1.44B from $2.92B.

Cash used in continuing operations fell to -$1.75B from a provision of $3.679B a year ago; free cash flow went negative, to -$2.93B from positive $2.46B.

Revenue by segment: Media Networks, $6.71B (up 21%); Parks, Experiences and Products, $6.6% (up 7%); Studio Entertainment, $3.84B (up 33%); Direct-to-Consumer and International, $3.86B (up from $827M).

Operating income by segment: Media Networks, $2.14B (up 7%); Parks, Experiences and Products, $1.7B (up 4%); Studio Entertainment, $792M (up 13%); Direct-to-Consumer and International, -$553M.

Conference call to come at 4:30 p.m. ET.

Press release

Try Seeking Alpha PREMIUM for unlimited analysis on DIS