Disney earnings miss estimates as streaming losses narrow, parks soar

Disney (DIS) reported quarterly results after the bell on Wednesday that showed earnings per share missed estimates by a penny while streaming losses narrowed as the company continues efforts to slash $5.5 billion in costs this year.

The report was the first since Disney announced its new three-pronged business reorganization — Disney Entertainment, ESPN, and Disney Parks, Experiences and Products — as CEO Bob Iger attempts to streamline the media giant and reset its strategy. The company will begin reporting under the new structure later this year.

Theme parks, particularly international parks, continued to be a strong outperformer with operating income hitting $2.17 billion in the quarter, echoing recent trends at competitors like Comcast's Universal (CMCSA).

Despite Disney+ subscribers missing expectations amid recent price hikes, streaming losses narrowed to $659 million in the second quarter— above consensus estimates of $850 million — from a loss of $887 million in the year-ago period. The company reported a streaming loss of $1.1 billion in Q1 and a $1.5 billion loss in Q4.

"We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success," Iger said in the earnings release. "From movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations."

The stock dipped immediately following the release, with shares slumping 2% in after-hours trading

Here are Disney's second-quarter results compared with Wall Street's consensus estimates, as compiled by Bloomberg:

• Revenue: $21.82 billion versus $21.82 billion expected

• Adj. earnings per share (EPS): $0.93 versus $0.94 expected

• Total Disney+ subscribers: 157.8 millionversus 163.1 million expected

• Disney Parks, Experiences and Products revenue: $7.78 billionversus $7.67 billion expected