Disney Shares Down On Profit Miss
Investors hate it when a company misses on profit targets. Walt Disney Co announced that both sales and profits lagged analyst expectations. They said consumer spending was largely to blame for the shortage.
The Burbank, California company said earnings for the quarter were $845 million, or 45 cents a share, down from $1.25 billion, or 63 cents, for the year earlier period.
The company joined Time Warner in announcing flat sales for old line media.
Disney said they plan on aggressively cutting costs in order to make up for declining revenues. Disney is the world's biggest theme park operator and is the second largest media company in the world.
So far Disney has already cut 200 workers from its ABC division, and reduced 200 other corporate jobs.
Revenue for the quarter was $10 billion, down from $10.5 billion in the year ago period.
Shares are down 6% in early trading.
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