Walt Disney Shares Inch Lower Following Weak Quarterly Revenue

Shares of Walt Disney Co. lost more than 0.5% in after-hour trading on Tuesday after the company reported revenue fell short of Wall Street estimates.

Disney posted better-than-expected net income of $2.48 billion, or $1.55 a share, beating analysts’ consensus estimate of $1.49 a share. However, revenue came in at $14.78 billion for its fiscal first quarter while market had expected Disney to report on sales of $15.3 billion.

Explaining for the shortfall in revenue, Disney cited “higher programming costs and lower advertising revenue” at ESPN as a drag on operating income. The media networks business brought Disney just $6.2 billion in the quarter, which is about $200 million less than expected and a 2% decline from the same quarter a year ago.

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