Walt Disney’s shares fell 9% on Wednesday, even though the company reported third-quarter earnings that beat some analysts’ estimates, reports the Los Angeles Times’ Company Town blog.
Reaction to the report played out on a day when media stocks — and the stock market in general — took a beating, but Disney shares were off more than most.
Disney warned that three issues could affect its fourth-quarter results: lower sales of syndicated TV shows, higher costs at ESPN and lower projected DVD sales.
Analysts also pointed out that third-quarter advertising from its cable network group was up just 2%, less than some had expected.
Some media shares beat the downward trend Wednesday, notably Lions Gate Entertainment, which rose 2%, and DreamWorks Animation, also up 2%.