Robert Downey Jr., right, and Jeremy Renner star in “Avengers: Endgame.” The superhero movie has set records, but Disney also suffered from the box office dud, “Dark Phoenix,” which it acquired when buying Fox.

Walt Disney Co.’s profits fell well short of Wall Street estimates in the third quarter, dropping 28% from a year ago due in part to the poor performance of newly-acquired Fox assets, such as the box office flop “Dark Phoenix.”

The Burbank, Calif. company also continued to spend big on streaming services, further eroding profits.

Disney earned $1.35 a share on revenue of $20.25 billion during the quarter that ended June 29, the company said last week. That compared with $1.87 a share on revenue of $15.23 billion during the same period of time last year.

The estimates were substantially below projections. Analysts had predicted earnings of $1.72 a share and sales of $21.45 billion in the third quarter.

“Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation,” Disney chairman and Chief Executive Bob Iger, said in a statement.

Operating income at Disney’s movie studio grew 13% to $792 million as the company enjoyed an extraordinary run of success at the box office. “Avengers: Endgame,” released in April, grossed $2.795 billion in worldwide ticket sales, making it the highest grossing movie ever, not adjusting for inflation. The superhero film unseated James Cameron’s “Avatar,” which generated $2.79 billion in receipts and held the record for nearly 10 years. Disney’s live action remake of “Aladdin” collected $1.03 billion, while Pixar’s “Toy Story 4” grossed $959 million.

However, the company also recorded a impairment charge for “Dark Phoenix,” the recent X-Men movie from 20th Century Fox that tanked at the box office.

The quarter did not include results from “The Lion King,” which hit theaters in July and has collected $1.2 billion in ticket sales as of last week.

Disney’s media networks business, which now includes Fox channels such as FX, saw its operating income grow 7% to $2.1 billion in the quarter.

The parks and consumer products segment posted a 4% increase in operating income to $1.72 billion.

The company’s direct-to-consumer segment posted an operating loss of $553 million on revenues of $3.86 billion.

The widening loss came as Disney absorbed Fox’s Hulu stake into its business and continued to invest in streaming services ESPN+ and Disney+, which is expected to launch in November.