Disney shares plunged 5% in early trading Wednesday after the company reported earnings that missed Wall Street’s expectations for the first time in five years.
The media behemoth’s revenues also missed forecasts.
Disney posted fiscal-second-quarter adjusted earnings per share of $1.36 and revenues totaling $13 billion.
Analysts had estimated that the company posted $1.40 in adjusted earnings per share, and revenues of $13.21 billion.
Cable-network revenues fell 2% to $4 billion, and consumer-product sales declined 2% to $1.2 billion.
ESPN led a 12% jump in cable profits to $2.02 billion, as the sports network was boosted by lower programming costs and higher affiliate revenues.
But the timing of college football playoff bowl games outside of its fiscal quarter led to lower ad revenues, and that reduced overall incomes.
Disney’s results come after a solid quarter for its films. Studio Entertainment revenues rose 22% to $2.1 billion compared to the same quarter last year. At the same time, operating income increased 27% to $542 million, although this could have been higher if the strong dollar did not dampen sales earned abroad.
With $73.7 million in domestic box-office sales, “Zootopia” smashed the record that “Frozen” set for the biggest opening weekend for a non-Pixar Disney animation. The Saturday box-office performance of $31.8 million was the largest ever for Walt Disney Animation Studios.
Disney announced that it is closing Infinity, its self-published console games business, and will take a charge of $147 million. This effectively means Disney is no longer in the video-gaming business.
Disney shares had rallied 1.5% this year through the close on Tuesday.
This chart shows the stock’s drop: