Walt Disney Co (NYSE:DIS) shares are expected to open lower despite revenues and earnings rising more than forecast in the past quarter, helped by Inside Out 2 (pictured) becoming the highest-grossing animated cinema release of all time.
Revenues from Disney World and Disney Land parks in the US decreased in what was the group’s fiscal third quarter, with overall sales from its Experiences division hit by “moderation of consumer demand towards the end of Q3 that exceeded our previous expectations”.
However, success in movie theatres and with the Disney+ streaming performance being better than expected, guidance was upped for full-year earnings per share growth of 30%.
For the third quarter, EPS came in at $1.39, up 35% on a year ago and beating Wall Street forecasts of $1.20.
Revenue of $23.2 billion for the quarter was up 4%, and just ahead of the Street’s $23.1 billion average estimate.
Core Disney+ subscriber numbers rose 1% to 118.3 million, while Hulu’s were up 2% to 51.1 million.
For the fourth quarter, core subscribers are expected to “grow modestly”, the company said.
Shares were down 1.2% to $88.89 premarket on Wednesday.