Disney earnings beat estimates

Walt Disney Co. delivered stronger than expected profits in the first quarter — thanks partly to a federal tax cut — but its revenue dipped as the Burbank company saw continued declines at its ESPN cable channels and ABC broadcast network.

Disney reported net income of $4.42 billion ($1.89 per share), up 78 percent from a year earlier, boosted by a $1.6 billion one-time tax benefit from the new federal tax law. The results beat analysts’ estimates. Revenue was $15.4 billion, up 4 percent.

Shares of Disney rose 1.4 percent in regular trading to $106.17. In the after-hours session, the stock was up about 1 percent.

The media networks unit — whose crown jewel is ESPN — reported operating income of $1.2 billion, a drop of 12 percent from a year earlier.

Disney’s film studio posted operating income of $829 million, off 2 percent from a year earlier. The unit benefited from the strong performance of “Star Wars: The Last Jedi,” which debuted in mid-December and has grossed more than $1.3 billion worldwide, but was squeezed by a decrease in home entertainment results.

The company’s consumer products and interactive unit delivered operating income of $617 million, a decrease of 4 percent. The parks and resorts business was a bright spot with operating income increasing 21 percent to $1.35 billion during the quarter.