=Walt Disney (DIS) reported earnings on Tue 10 May 2016 (a/h)

Walt Disney misses by $0.04, misses on revs :

• Reports Q2 (Mar) earnings of $1.36 per share, $0.04 worse than the Capital IQ Consensus of $1.40; revenues rose 4.1% year/year to $12.97 bln vs the $13.2 bln Capital IQ Consensus.
  • First earnings miss since 2Q11; third sales miss in last four quarters.
• Cable Networks revenues for the quarter decreased 2% to $4.0 billion and operating income increased 12% to $2.0 billion due to an increase at ESPN, partially offset by lower equity income from A&E. The increase at ESPN was due to the benefit of lower programming costs and higher affiliate revenues, partially offset by a decrease in advertising revenue. Results for the quarter benefited from the timing of our fiscal quarter end relative to when College Football Playoff (CFP) bowl games were played, which resulted in a decrease in programming costs and advertising revenue. Affiliate revenue growth was due to contractual rate increases, partially offset by a decline in subscribers. Lower advertising revenue was due to lower ratings and rates, which were negatively impacted by the timing of CFP bowl games, partially offset by higher units sold.
• Broadcasting revenues for the quarter increased 3% to $1.8 billion and operating income decreased 8% to $278 million due to lower operating income from program sales and higher programming and marketing costs, partially offset by advertising and affiliate revenue growth.
• Parks and Resorts revenues for the quarter increased 4% to $3.9 billion and segment operating income increased 10% to $624 million. Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations.
• Studio Entertainment revenues for the quarter increased 22% to $2.1 billion and segment operating income increased 27% to $542 million. Higher operating income was due to an increase in theatrical distribution results and growth in TV/SVOD distribution, partially offset by the impact of foreign currency translation due to the strengthening of the U.S. dollar against major currencies, decreased home entertainment results and higher film cost impairments.
• Consumer Products & Interactive Media revenues for the quarter decreased 2% to $1.2 billion and segment operating income decreased 8% to $357 million.