Disney shares down on profits warning

Shares in Walt Disney are down today (August 7th), after the company confirmed it expects to lose a huge amount of money on its latest blockbuster.

The Lone Ranger – which stars Armie Hammer and Johnny Depp – is expected to lose the company as much as $190 million (£124 million) due to poor performance in cinemas.

Third-quarter results released by the firm show that its earnings were almost unchanged but revenue was up by four per cent. Disney revealed that it made $1.85 billion in the quarter to the end of June 2013, which was up from $1.83 billion last year.

It noted that while Iron Man 3 has not performed as well at the box office as The Avengers last year, Monsters University has taken more money than Brave did in 2012.

On the back of the financial results, stocks in the entertainment company dropped by 2.63 per cent as of 16:17 BST.

Stocks were trading at 65.29, a drop of 1.77 points on the start of the day's session.

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