Disney slumps as earnings and sales miss expectations despite box-office hits

• Disney reported third-quarter financial results after the market close on Tuesday that missed analyst expectations for both revenue and profit.
• The conglomerate's movie studio reported revenue of $3.86 billion during the period, falling short of the $4.56 billion estimate from analysts.
• Shares of Disney fell 4% on the results.
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Disney's third-quarter results missed Wall Street's forecasts despite the media giant's movie studio breaking several box office records this year.

Here are the key numbers:

• Revenue: $20.25, compared to $21.44 billion expected by analysts.
• Earnings per share: $1.35, compared to $1.75 expected by analysts.
• Net income: $1.45 billion, compared to $2.9 billion expected by analysts.

"Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation," CEO Bob Iger said in a statement.

Shares of Disney fell 3.51% on the results.

Disney's studio entertainment division recorded revenue of $3.86 billion, as the company released several box office hits during the quarter including "The Lion King," "Aladdin," and "Avengers: Endgame." Analysts expected studio revenues to be $4.56 billion.

Marvel's "Avengers: Endgame" rose to become the highest-grossing movie of all time with more than $2.79 billion in worldwide ticket sales in July. Disney's box office revenues also surpassed $8 billion for the year, breaking the record for total annual box office sales for a movie studio.

Media networks generated $6.7 billion in revenue for the period, and Disney's parks, experiences, and products segment accounted for $6.57 billion in sales. Direct-to-consumer and international revenues came in at $3.85 billion, an increase of more than 100% from the same period last year.

The results come a few months before Disney is expected to roll out Disney Plus, a streaming platform that will include movies from the Marvel, Star Wars, and Pixar franchises, in addition to a variety of TV series from the company's vast content library. The service is expected to cost $6.99 per month and will include content from Disney's $71 billion acquisition of Fox.

Disney was up 24.6% year-to-date through Tuesday's close.