Walt Disney Earnings Beat Market Estimates; Profit Slips at Parks

The entrance to Walt Disney studios is seen in Burbank, California, US August 6, 2018. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights
The entrance to Walt Disney studios is seen in Burbank, California, US August 6, 2018. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights
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Walt Disney Earnings Beat Market Estimates; Profit Slips at Parks

The entrance to Walt Disney studios is seen in Burbank, California, US August 6, 2018. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights
The entrance to Walt Disney studios is seen in Burbank, California, US August 6, 2018. REUTERS/Lucy Nicholson/File Photo Purchase Licensing Rights

Walt Disney reported on Wednesday quarterly earnings that exceeded Wall Street expectations, buoyed by the success of animated Pixar film "Inside Out 2", which helped overcome a profit decline at theme parks.

April-June operating income nearly tripled at its Entertainment unit, with the combined streaming businesses of Disney+, Hulu and ESPN+ posting a profit for the first time, Reuters reported.

But the company's shares slipped 0.8% before the bell as its experiences segment that includes parks and consumer products - and makes up just over half of profit - recorded an operating income drop of 3%. Disney said "moderation" of demand at its US parks could continue through the next few quarters.

Operating income for the unit is likely to fall by "mid single digits" in the July-September quarter compared with the same period a year prior, Disney said.

Adjusted earnings-per-share reached $1.39 for Disney's fiscal third quarter, topping analyst estimates of $1.19, LSEG data showed. Revenue rose 4% to $23.2 billion, beating forecasts of $23.1 billion.

Chief Executive Bob Iger touted success in the entertainment division, where Disney's combined streaming businesses turned a profit a quarter ahead of its projections.

"We are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets," Iger said in a statement.

Iger is working to rebuild Disney after billions of dollars in loss from streaming efforts, the decline of traditional television and a rough patch for its storied film studio.

The movie studio is showing signs of resurgence.

"Inside Out 2" notched $1.6 billion in global ticket sales and "Deadpool & Wolverine," which debuted in the current quarter, has brought in more than $850 million.

"After several years of misfires and muted successes, Disney has now in the span of a month and a half released the highest grossing animated film of all time and achieved the largest ever opening for an R-Rated film," MoffettNathanson media analyst Robert Fishman wrote ahead of Disney's earnings release.

While it remains to be seen whether those successes represent a return to form, Fishman said, the upcoming film slate is "filled with highly dependable" titles including "Moana 2" and Oscar-winning director Barry Jenkins' "Mufasa: The Lion King."

The Entertainment division, which includes the film, television and streaming businesses, reported operating income of $1.2 billion in the quarter.

The Disney+, Hulu and ESPN+ streaming services produced operating profit of $47 million.

At the Sports unit, which includes the ESPN network and Star India business, operating income reached $802 million, a 6% decline from the previous year as costs to air cricket matches increased.

The experiences unit reported operating income of $2.2 billion. Demand slid at domestic parks, cruise ships, consumer products and some international parks "delivered improved results," Disney said.

Ben Barringer, technology and media analyst at Quilter Cheviot, said the parks results "pour fuel onto the fire" of concern about a slowing US economy.

"Coupled with other travel companies recognizing poor growth, it is clear people are scaling back their spend when it comes to tourism and recreation," Barringer said. "Some of this is due to Disneyland Paris struggling due to the Olympics being in town, as well as China going through its own economic problems, but the guide is not a positive one and thus we should expect further struggles through the rest of the year."



Jennifer Lopez Slays TIFF Red Carpet as She Unveils 'Unstoppable'

Actor and singer Jennifer Lopez arrives for the screening of the movie ‘Unstoppable’ during the 49th annual Toronto International Film Festival (TIFF), in Toronto, Canada, 06 September 2024. EPA/EDUARDO LIMA
Actor and singer Jennifer Lopez arrives for the screening of the movie ‘Unstoppable’ during the 49th annual Toronto International Film Festival (TIFF), in Toronto, Canada, 06 September 2024. EPA/EDUARDO LIMA
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Jennifer Lopez Slays TIFF Red Carpet as She Unveils 'Unstoppable'

Actor and singer Jennifer Lopez arrives for the screening of the movie ‘Unstoppable’ during the 49th annual Toronto International Film Festival (TIFF), in Toronto, Canada, 06 September 2024. EPA/EDUARDO LIMA
Actor and singer Jennifer Lopez arrives for the screening of the movie ‘Unstoppable’ during the 49th annual Toronto International Film Festival (TIFF), in Toronto, Canada, 06 September 2024. EPA/EDUARDO LIMA

Jennifer Lopez infused the Toronto film festival with a dose of A-list glamor Friday at the world premiere of her new movie, true-story sports drama "Unstoppable," which earned a rousing ovation.
The 55-year-old actress, singer and dancer was making her first red carpet appearance since the announcement of her divorce from Ben Affleck, who co-produced the film with best friend Matt Damon but was not in attendance.
And she did not disappoint, wearing a skin-baring metallic silver gown with seemingly nothing but giant black velvet bows holding it together, her hair long and loose. Sky-high silver platform heels finished the look.
In "Unstoppable," Lopez plays Judy, the mother of high school wrestler Anthony Robles (Jharrel Jerome) who, though born with only one leg, doggedly pursued -- and achieved -- his dream of becoming a US university champion.
Oscar nominee Don Cheadle and Michael Pena play his demanding coaches, and Bobby Cannavale plays his abusive stepfather, who repeatedly puts the family in jeopardy.
"Unstoppable" tells Robles's inspiring story while also delving into the difficulties of his family life, and showcasing his close relationship with his mother.
The film had several applause moments in the buildup to Robles's winning run to a college championship for Arizona State University. Then, as the credits rolled, Robles himself, in the theater, earned a standing ovation from the crowd at Roy Thomson Hall.
"When I read the script, I felt like so many women, including myself, could relate to the struggles that she had gone through in her life," Lopez said in a question-and-answer session after the screening.
"This story being a Latino story, being so inspiring -- it was just something that kind of grabbed me."
Jerome said he trained for five months, including with Robles on the wrestling mat.
"As an actor, it is one of the most daunting tasks to portray somebody that is real," he said.
"Unstoppable" was one of the marquee events of day two at the Toronto International Film Festival, the largest in North America, which offers a mix of Oscar-bait movies, feel-good family fare and searing documentaries.
This year marks a return to normal for the event, after twin strikes by actors and writers kept top talent from promoting their work here last year.
Lopez is just one of the major stars visiting Canada's biggest city for the festival.
Ben Stiller, Orlando Bloom and Katy Perry hit the red carpet on Thursday night. Also expected are Angelina Jolie, Elton John, Bruce Springsteen, Salma Hayek, Cate Blanchett and Nicole Kidman.
'The Last Showgirl'
Earlier, Gia Coppola debuted her latest effort behind the camera, "The Last Showgirl," starring Pamela Anderson as veteran Vegas performer Shelley, who is left in despair when her show is abruptly canceled.
After a 30-year run dancing half-naked in sequins and high heels in a traditional Sin City show, Shelley must figure out what the future holds.
Coppola -- the granddaughter of legendary director Francis Ford Coppola -- goes beyond the bright lights of America's favorite gambling playground to show the harsh realities of the entertainment industry and what happens to those it discards, especially women.
"I think I’ve been getting ready my whole life for this role," Anderson told the audience after the screening.
The "Baywatch" actress quipped that it was the first time she'd been offered a script that was "coherent."
Jamie Lee Curtis teared up as she spoke about the film. She plays Annette, a onetime dancer and Shelley's best friend who ends up waitressing to make ends meet -- and frittering away her hard-won earnings on bets.
"It's a movie about dreams and going after your dreams," only to discover they may never be realized, said the Oscar winner.