.August 7, 2024 04:28:00 PM

Walt Disney (NYSE:DIS) beat analyst expectations in Q3 earnings, driven by a strong Entertainment segment. However, shares fell over 4% due to concerns about weakening demand in the Experiences segment. Disney and Comcast are still in a dispute over Hulu’s valuation, with Disney potentially needing to pay $5 billion more for NBCUniversal’s stake.

Disney reported adjusted EPS of $1.39, exceeding the Street estimate of $1.20, with revenue at $23.2 billion, slightly above the consensus of $23.08 billion. The Entertainment segment saw operating income nearly triple year-over-year, led by Direct-to-Consumer and Content Sales/Licensing.

Despite achieving profitability in streaming businesses ahead of schedule, Disney warned of softening consumer demand in the Experiences segment, expecting a mid-single digit decline in Q4 operating income compared to last year. The company has adjusted its full-year EPS growth target to 30% based on strong Q3 financial performance.