Walt Disney Misses Wall Street Forecasts in Latest Quarter

Shares of Disney (DIS) - Get Report took a hit in extended hours trading on Tuesday after the media giant posted second quarter results that missed expectations on both the top and bottom line. Disney posted adjusted profits of $1.36 a share, four cents shy of expectations. On the top line, revenue was weaker than expected. Cable networks revenue declined two percent to $4 billion. ESPN saw a slight increase in revenue on the back of lower programming costs and higher affiliate revenues, but it did see a decline in advertising revenue. When it comes to theme parks, higher revenue in the U.S. helped offset declines in the company's international operations. Overall, the theme park segment was up four percent. A clear bright spot was studio revenue which climbed 22 percent due to the strong performance of Star Wars: The Force Awakens and Zootopia. The latest results were the first time Disney missed expectations in 5 years. TheStreet's Ruben Ramirez reports from Wall Street.