Disney (DIS): Cutting EPS To A Y/Y Decline - UBS

September 29, 2016 8:25 AM EDT
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Price: $107.66 +0.35%

Rating Summary:
    21 Buy, 17 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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UBS analyst, Doug Mitchelson, reiterated his Buy rating on shares of Walt Disney (NYSE: DIS) but cut his price target to $112 from $116 after cutting F4Q EPS $0.08 to $1.11, or -8% Y/Y.

Disney's CEO, Mr. Iger, recently noted that the extra week recorded in last year's 4th quarter (calendar timing) was a $350m difficult EBIT comparison this year, the first quantification of this issue. The new forecast is for EBIT to be down $347m Y/Y, suggesting that Disney will be essentially flat Y/Y on a core basis.

Changes included:

1) lowered cable network ad revenue $76m to -11% Y/Y from -4% due to poor NFL ratings so far this season and a softer performance against the Olympics than expected

2) higher Media Networks opex as investment rebounded after several below-trend quarters

3) modestly lower film with The BFG below estimates

4) Increased Parks from 1% EBIT growth to 5% on continued Domestic strength

For an analyst ratings summary and ratings history on Walt Disney click here. For more ratings news on Walt Disney click here.

Shares of Walt Disney closed at $92.20 yesterday.

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