Finance: Disney slides after missing on revenue and ending its streaming agreement with Netflix (DIS, NFLX)

Disney's second-quarter profits topped analysts' forecast but revenue missed expectations.

Disney's second-quarter profits topped analysts' forecasts but revenues missed expectations.

The company on Tuesday said it earned $14.24 billion in revenue, less than the estimate for $14.42 billion according to Bloomberg. Disney earned $1.58 per share on an adjusted basis, topping the forecast for $1.55.

Disney's stock fell nearly 3% in extended trading after the earnings release.

Disney also announced that it would launch an ESPN-branded streaming service for sports content in early 2018, and a Disney-branded service in 2019. Disney said it would end its agreement to release new titles for streaming on Netflix, starting with movies released in 2019.

Netflix shares fell nearly 4% after-hours following the news.

Disney said it was investing $1.58 billion to raise its stake in BAMTech, a video-streaming company, giving it majority ownership.

Revenue from Disney's cable networks fell 3% to $4.1 billion, dragged by a continued decline at ESPN. Studio entertainment revenues were also lower due to the weaker performance of Disney's movies.

Disney's second-quarter profits topped analysts' forecast but revenue missed expectations. Read Full Story