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Wells Fargo Raises Estimates on Walt Disney (DIS); Revenue Was Light, But So Were Expenses

February 8, 2012 11:26 AM EST
DIS Hot Sheet
Rating Summary:
    11 Buy, 7 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 8 | New: 36
Wells Fargo maintains a 'Market Perform' on Walt Disney (NYSE: DIS) price target range raised to $42-44 from $41-43.

Wells analyst says, "Revenue was light in every segment but the two that really matter, i.e. cable nets and the Parks - both of which were in line; while segment operating income was roughly $181MM ahead of our expectation due to lower expenses (primarily at the parks and studio entertainment). Given the higher operating income in addition to a slightly lower tax rate, EPS was $0.80 vs. our $0.71E. We would characterize the tone of the call as positive, with ad trends picking up, ESPN facing some tailwinds, and park trends steady. We are raising our EPS ests for FY2012 and FY2013 to $3.00 and $3.36, from $2.90 and $3.32, respectively."

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 $40.98 yesterday, with a 52 week range of $28.19-$44.34.


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