Disney Drops After Missing Q4 Estimates, Studio Entertainment Down 21%

Walt Disney Co DIS shares are falling following a big fourth-quarter miss on both the top and bottom line.

The media giant delivered fourth-quarter adjusted EPS of $1.07, missing estimates by 8 cents. Sales came in at $12.77 billion, missing estimates by $561 million.

"No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company," said Chairman and CEO Robert Iger. "We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value."

Q4 Highlights:

• Media Networks decreased 3 percent to $5.5 billion
• Broadcasting income decreased $42 million due to lower advertising revenue
• Parks and Resorts revenues increased 6 percent to $4.7 billion
• Studio entertainment decreased 21 percent to $1.4 billion
• Consumer products & interactive media revenues decreased 6 percent

Shares of Disney were down 3 percent at $99.60 in the after-hours session. Click here to see the full release.