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Disney’s stock plummets as Fox integration rains on ‘Avengers’ magic

Disney’s stock plummets as Fox integration rains on ‘Avengers’ magic
[Photo: courtesy of Walt Disney Pictures]

Three months after it ate Fox for dinner, the Walt Disney Company is having a bit of indigestion. The entertainment giant partially blamed the integration of 21st Century Fox assets after it missed earnings estimates this afternoon for its fiscal third quarter, despite the fact that its studio division earned a staggering $8 billion at the global box office so far this year.

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Here’s a roundup of the key numbers:

  • EPS: $1.35, down 28%
  • Total revenue: $20.25 billion, up 33%
  • Media networks revenue: $6.7 billion, up 21%
  • Studio revenue: $3.8 billion, up 33%
  • Theme parks revenue: $6.6 billion, up 7%

As you can see, Disney’s studio division is doing gangbusters, thanks to a string of profitable hits during the quarter, including Avengers: Endgame, Toy Story 4, and Aladdin.

However, consensus estimates cited by CNBC note that Disney’s EPS and total revenue were both below what analysts were expecting. In addition to the Fox drag, the company also blamed higher costs and lower volume at its theme parks, a segment that has been growing at a fast clip. Disney’s much-anticipated Star Wars: Galaxy’s Edge attraction opened at Disneyland Resort on May 31.

Disney shares were down almost 3% in after-hours trading.

“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” Disney CEO Bob Iger said in a statement.

We’ll have more analysis after the earnings call. You can read the full report here.

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