Disney Falls on 'Lone Ranger' Losses; Fox Jumps on Cable-TV Growth

NEW YORK ( TheStreet) -- Disney ( DIS)beat analyst forecasts for a 9th consecutive quarter as the world's largest entertainment company reported gains at its hugely popular ESPN network and its assortment of theme parks.

Net income increased to $1.85 billion, or $1.01 a share, from $1.83 billion, or $0.79 a share from the same period a year ago. Revenue grew 4.4% to $11.6 billion in the period ended June 29.

Disney shares were dropping in post-market trading as the Burbank, Calif.-based company said it expected The Lone Ranger to lose as much as $190 million. Disney closed on Tuesday at $67.05.

Gains at Disney's cable-TV channels led by ESPN and A&E offset decreases at ABC Family, which endured a drop in ratings. Broadcasting operating income fell $55 million to $213 million as primetime programming costs grew and advertising revenue declined.

Disney's The Lone Ranger remake, starring Johnny Depp and Armie Hammer, was a giant disappointment for the studio. The film brought in only $185 million, forcing a write down of $150 million after it fell short of recouping $250 million in production costs. That film and Iron Man 3 were unable to replicate the success the studio saw last summer with the releases of The Avengers and Brave.

Elsewhere, 21st Century Fox ( FOX) was surging in after-hours trading after posting an operating profit increase of 64% as the media company controlled by Rupert Murdoch reported its first earnings since spinning off its publishing businesses.

Fox reported income from continuing operations of $977, or 42 cents a share, compared with $596 million, or 25 cents from the same period a year ago.

The bump in profits came from Fox's cable-TV channels which helped to offset a decline at the company's film division, slowed in part by the disastrous showing of "The Internship." Sales were slightly above expectations at $7.21 billion compared to a consensus of $7.12 billion.

-- Written by Robert Arenella in New York

>To contact the writer of this article, click here: Robert Arenella.

More from Stocks

Key Numbers for Investors to Watch as Amazon, Microsoft and Intel Report Results

Key Numbers for Investors to Watch as Amazon, Microsoft and Intel Report Results

Twitter Tops Wall Street's Estimates - Here Are the Key Numbers You Need to Know

Twitter Tops Wall Street's Estimates - Here Are the Key Numbers You Need to Know

You Aren't Witnessing a Panic in the Stock Market, So Chill Out

You Aren't Witnessing a Panic in the Stock Market, So Chill Out

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

Facebook, Boeing, Shire and Credit Suisse - 5 Things You Must Know

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open

3 Must Know Market Insights From TheStreet's Jim Cramer Before Wednesday's Open