Walt Disney Co. disappointed Wall Street with a tepid full-year profit forecast, weighed down by its struggling movie and TV businesses.   

Earnings should increase 18% to $5.85 share in fiscal 2025, excluding some costs, the company said Wednesday. That outlook was less than some analysts had been expecting and put a damper on a mostly positive third-quarter report that showed strength in theme parks and streaming, two growth businesses.   

Disney expects to generate $1.3 billion of operating income from its direct-to-consumer streaming business in fiscal 2025, which ends in September, up from a previous forecast of $1 billion. Management also expects operating income from the parks business to increase 8% in the current fiscal year — at the top end of previous guidance.  

Revenue from Disney’s traditional TV networks, which include ABC and National Geographic, fell 15% in the quarter to $2.27 billion. Operating income tumbled 28% to $697 million due to a decline in viewers and lower advertising rates.   

The unit that includes the Disney film studios lost $21 million in the quarter, hurt by the disappointing theatrical performance of the Pixar film Elio and Thunderbolts* from Marvel Studios. The loss was likely due to write downs associated with those features, analysts at Barclays Research wrote in a note.   

For analysis, Paul Sweeney and Isabelle Lee speak with Bloomberg Intelligence Senior Analyst Geetha Ranganathan.

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