Disney Stock Plunges as Q4 Revenue Misses Estimates

Disney stock fell more than 8% after the company reported mixed fourth-quarter results, as ongoing declines in its linear TV business offset gains in parks and streaming, Allie Canal reported for Yahoo Finance.

Tron: Ares is Disney's latest box office flop. (Photo: Walt Disney Studios)

Disney posted quarterly revenue of $22.46 billion, below analyst expectations of $22.83 billion and roughly flat year over year.

A 6% revenue decline in the company’s Entertainment division — which includes streaming, television, and theatrical — contributed to the miss.

Linear network revenue dropped 16% from a year earlier, while operating income fell 21%, driven by accelerating cord-cutting and advertisers shifting budgets to streaming platforms.

The results arrive in the final phase of CEO Bob Iger’s turnaround effort ahead of his planned departure next year.

Disney said operating income took a hit from the sale of its Star India assets, which had contributed $84 million to results in the prior year.

Domestic linear networks also suffered from lower advertising tied to weaker viewership and a $40 million decline in political ad spending compared to the year-earlier quarter. Softer theatrical results further weighed on the Entertainment segment.