Investing.com - Walt Disney (NYSE:DIS) on Tuesday reported second-quarter earnings and revenue that fell short of expectations as the coronavirus pandemic dealt a blow to its theme parks business, but boosted demand for Disney+.
Walt Disney shares gained 0.28% in after-hours trade following the report.
Walt Disney announced earnings per share of $0.6 on revenue of $18.01 billion. Analysts polled by Investing.com anticipated EPS of $0.94 on revenue of $18.08 billion. That compared with an EPS of $1.61 on revenue of $14.92 billion in the same period a year before. Walt Disney had reported EPS of $1.53 on revenue of $20.86 billion in the previous quarter.
The lockdown measures to combat the Covid-19 pandemic had a notable impact on Disney's businesses vulnerable to weaker customer traffic and foot flow, with revenue from its parks, experiences and products division down 10% to $5.54 billion for the quarter year on year and studio entertainment up 10% to $2.54 billion.
Its direct-to-consumer and international business saw revenue rise 261% to $4.12 billion, but operating losses widened amid costs associated with the launch of Disney+ and the consolidation of Hulu.
"The impact of Covid-19 and measures to prevent its spread are affecting our segments in a number of ways, most significantly at parks, experiences and products where we have closed our theme parks and retail stores, suspended cruise ship sailings and guided tours and experienced supply chain disruptions," Disney said.
"We estimate the COVID-19 impact on operating income at our parks, experiences and products segment was approximately $1.0 billion primarily due to revenue lost as a result of the closures. In total, we estimate that the COVID-19 impacts on our current quarter income from continuing operations before income taxes across all of our businesses was as much as $1.4 billion, inclusive of the impact at the parks, experiences and products segment," it added.
Analysts are expecting EPS of $0.19 and revenue of $15.55 billion in the upcoming quarter.
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