NEW YORK (TheStreet) -- Shares of Walt Disney (DIS) slumped in extended trading on Tuesday after the Dow component's fiscal second-quarter results came in well short of Wall Street's consensus expectations.
The media and entertainment conglomerate reported a profit of $942 million, or 49 cents a share, on revenue of $9.08 billion for the three months ended on April 2, down slightly from year-ago earnings of $953 million, or 48 cents a share, on revenue of $8.58 billion.
The average estimate of analysts polled by Thomson Reuters was for a profit of 57 cents a share on revenue of $9.12 billion in the latest quarter.
The company said its Parks and Resorts division experienced a 3% year-over-year decline in operating income to $145 million because of the impact of the early March earthquake and tsunami in Japan on its Tokyo Disney Resort, and higher operating and promotional expenses for its Disney Cruise Line business following the launch of its new Disney Dream cruise ship.Disney's Studio Entertainment business was also a weak performer with revenue falling 13% from last year to $1.3 billion, and operating income plunging 65% to $77 million as the release of Mars Needs Moms was disappointing. Robert Iger, the company's CEO and president, was positive, however, about the performance, which represents Disney's second miss in the last three quarters. "We are pleased with the underlying quality of our second quarter earnings," said Iger. "There is great creative momentum throughout the company which gives us continued confidence in our ability to grow our businesses."
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