The Walt Disney Company reported Tuesday a fiscal third-quarter profit of $2.92 billion.
On a per-share basis, the Burbank, California-based company said it had a profit of $1.95. Earnings, adjusted for pre-tax gains, came to $1.87 per share.
On a per-share basis, the Burbank, California-based company said it had a profit of $1.95. Earnings, adjusted for pre-tax gains, came to $1.87 per share.
The earnings were slightly lower than expected, leaving investors disappointed.
"We've always believed we have the brands and content to be extremely competitive and to thrive alongside Netflix, Amazon and anyone else in the market. And, adding the Fox brands of creative assets, such as, Searchlight, FX and National Geographic to Disney, Pixar, Marvel and Lucas Film and ABC will make our DTC products even more compelling to consumers," Iger said.
Iger said Disney will focus on catering to consumers who are tired of being told what to watch; viewers who want on-demand content.
"It gives Disney ownership of a lot of IP (intellectual properties) that they can now build upon for the parks," said Dr. Duncan Dickson with UCF Rosen College of Hospitality Management.
Dickson said Disney owning Fox franchises will provide new opportunities at the theme parks, and it will no longer have to license "Avatar."
"I really don't see any loss of jobs anywhere. It's just going to expand," Dickson said.
The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of $1.97 per share.
The entertainment company posted revenue of $15.23 billion in the period, which also did not meet Wall Street forecasts. Four analysts surveyed by Zacks expected $15.49 billion.
Disney shares have risen slightly more than 8 percent since the beginning of the year, while the Standard & Poor's 500 index has risen almost 7 percent. In the final minutes of trading on Tuesday, shares hit $116.56, an increase of almost 10 percent in the last 12 months.
The Associated Press contributed to this report.
AP/Cox Media Group
