On Tuesday Disney Reported Mixed Third-Quarter Earnings
The Walt Disney Co. posted its third quarter earnings report which met the market expectations but the profits fell slightly short of the analysts' expectations. The company's shares dropped during the extended trading hours following the news. It also lowered its profit forecast for its cable TV arm.
This year, Disney is listed as one of the top performing stocks in the Dow Jones Industrial Average. The company said that there will be a $500 million drop in its operating income in the coming year due to a strong dollar. The stock dropped 6.5 percent to $113.75 as the results were announced for the quarter on Tuesday.
Two challenges are cutting down the profits of the company. Firstly lesser number of cable networks subscribers at ESPN which is its biggest business and secondly the strong dollar which is taking its toll on the losses in foreign exchange. It's cutting down the results in the cable TV as well as the international theme park businesses. The lowered forecast worried investors who are used to witness strong sales as well as profit the company based in Burbank, California.
In a research report Barclays upped their Walt Disney price target on shares to $100.00 from $94.00 giving a rating of "equal weight" on July 20th.
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