Disney misses quarterly revenue estimates, shares fall

FILE PHOTO: A screen shows the trading info for The Walt Disney Company company on the floor of the NYSE in New York
FILE PHOTO: A screen shows the logo and a ticker symbol for The Walt Disney Company on the floor of the New York Stock Exchange (NYSE) in New York, U.S., December 14, 2017. REUTERS/Brendan McDermid/File Photo

May 18, 2021

(Reuters) – Walt Disney Co missed analysts’ estimates for quarterly revenue on Thursday as streaming subscriber additions slowed from movie theaters gradually reopening and operations at its theme parks remaining restricted.

Shares of the company fell 4% to $172 in extended trading.

The rapid growth in subscribers during the pandemic seems to be slowing as vaccine rollouts accelerate theater reopenings and live sports events, giving people more avenues of entertainment.

Overall revenue fell 13% to $15.61 billion in the second quarter ended April 3, compared with analysts’ estimate of $15.87 billion, according to IBES data from Refinitiv.

Net income from continuing operations rose to $912 million, or 50 cents per share, in the second quarter from $468 million, or 26 cents per share, from a year earlier.

(Reporting by Lisa Richwine in Los Angeles; Eva Mathews and Tiyashi Datta in Bengaluru; Editing by Sriraj Kalluvila)