10:49 AM EDT, 05/07/2024 (MT Newswires) -- (Updates with additional details, stock move.)

Walt Disney ( DIS ) shares were falling past 10% in recent Tuesday trading after the company reported fiscal Q2 earnings and said it expects "softer" results from its direct-to-consumer business, which includes streaming, in Q3.

"The Entertainment Direct-to-Consumer business was profitable in the second quarter," the company said in its Q2 earnings release. "While we are expecting softer Entertainment DTC results in Q3 to be driven by Disney+ Hotstar, we continue to expect our combined streaming businesses to be profitable in the fourth quarter, and to be a meaningful future growth driver for the company, with further improvements in profitability in fiscal 2025," it said.

Disney ( DIS ) reported fiscal Q2 adjusted earnings Tuesday of $1.21 per diluted share, up from $0.93 a year earlier.

Analysts surveyed by Capital IQ expected $1.10.

Revenue for the quarter ended March 31 was $22.08 billion, up from $21.82 billion a year earlier.

Analysts polled by Capital IQ expected $22.14 billion.

Price: 104.79, Change: -11.69, Percent Change: -10.03