Disney earnings drop 26% on weaker theme park, media results

BURBANK, Calif. -- Net income in the three months ending June 27 sank to $954 million, or 51 cents a share, from $1.28 billion, or 66 cents a share, in the same period a year ago.

Revenue fell 7% to $8.6 billion, from $9.24 billion, a year ago.

After excluding a restructuring and impairment charge of a penny per share, adjusted income was 52 cents a share.

That barely beat analysts expectations of 51 cents a share of earnings, but the revenue figure was below estimates of $8.83 billion, according to Thomson Reuters.

"While a tough global economy impacted our performance in the quarter, we remain encouraged by the relative strength of our business," Chief Executive Robert Iger said in a statement.

Revenue from ABC and ESPN fell 2% to $3.96 billion, driven by lower advertising revenue at ESPN.

Parks and resorts revenue fell 9% to $2.75 billion as guests spent less, but Chief Financial Officer Tom Staggs said in a conference call with journalists that the company was "pleased with the attendance overall."

Movie studio revenue fell 12% to $1.26 billion as this year's home video slate didn't compare well to last year's releases, which included National Treasure: Book of Secrets and Enchanted.

Consumer products revenue fell 10% to $510 million.

Shares fell about 2% in extended trading Thursday. Before the release of results, shares closed up 33 cents, or 1.3%, at $26.22.