Disney (DIS): Cutting EPS To A Y/Y Decline - UBS
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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.
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
Shares of Walt Disney closed at $92.20 yesterday.
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