Walt Disney Co shares traded lower by 3.7 percent on Thursday after the company reported first-quarter earnings and said ongoing COVID-19 disruptions are weighing on its Asia theme park business.
On Wednesday, Disney reported fiscal second-quarter adjusted EPS of $1.08 on revenue of $19.25 billion. Both numbers missed consensus analyst estimates of $1.19 and $20.1 billion, respectively. Revenue was up 23 percent from a year ago.
Disney said revenue was reduced by about $1 billion due to the termination of a licensing contract with an unnamed customer.
Disney also reported 137.7 million Disney+ subscribers, beating analyst estimates of 135 million subs.
Revenue in Disney’s parks, experiences and products segment more than doubled to $6.7 billion, but the company also said COVID-19 lockdowns and restrictions in Asia could reduce third-quarter operating income by $350 million.
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