Disney has reported quarterly earnings that fell short of forecasts, and announced it is discontinuing its Disney Infinity line of video games.

The company based in California said on Tuesday it had second-quarter earnings of $US2.14 billion ($A2.91 billion), or $US1.30 per share. Earnings, adjusted for non-recurring costs, came to $US1.36 per share.

Disney’s consumer products and interactive media revenues for the quarter decreased two per cent to $1.2 billion and segment operating income decreased eight per cent to $357 million. Lower operating income was primarily due to the impact of foreign currency translation due to the strengthening of the US dollar against major currencies, lower operating margins and comparable store sales at the company’s retail business and lower results for Infinity. These decreases were partially offset by higher licensing revenues.

Increased licensing revenues were driven by higher revenue from Star Wars merchandise, partially offset by an adverse impact from the timing of minimum guarantee shortfall recognition and a decrease in revenue from merchandise based on Frozen.

The adjusted results, which exclude the $US147 million charge — or 6 US cents per share — for shutting the Infinity division down, fell short of Wall Street expectations.

The average estimate of 11 analysts surveyed by Zacks Investment Research was for earnings of $US1.40 per share.

The entertainment company posted revenue of $US12.97 billion in the period, also falling short of Street forecasts. Six analysts surveyed by Zacks expected $US13.26 billion.

Analysts were expecting better performance at the parks and in the consumer products division that houses the Infinity line.

Disney shares tumbled six per cent in after-hours trading after the results were released, taking them into negative territory for the year.

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