Nomura Securities Cuts Estimates on Walt Disney (DIS); Shocked on John Carter, But Overall Biz is Good
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Price: $112.43 -0.45%
Rating Summary:
30 Buy, 19 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
30 Buy, 19 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Nomura Securities maintains a 'Buy' on Walt Disney (NYSE: DIS) price target of $46.00.
Analyst, Michael Nathanson, said, "Last night, Disney perhaps unsurprisingly announced that it expects to recognize a material loss on the studio’s most recent film release, John Carter. However, at $200mn the real surprise was the amount, which was much higher than most had anticipated (including us)...Adjusting for the higher John Carter film losses, we are lowering segment EBIT by $152mn to -$115mn for the quarter. Our F2Q EPS estimate drops by an additional $0.05 to $0.51, while FY12 EPS moves to $2.90 (from $2.96 previously)."
"As with last year’s film write down, we believe that one-off charges at the Studio segment are not indicative of the overall health of the company’s core businesses – namely the Media Networks and Parks. We view any pullback in the stock around this higher film loss as an enhanced buying opportunity."
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 $43.44 yesterday.
Analyst, Michael Nathanson, said, "Last night, Disney perhaps unsurprisingly announced that it expects to recognize a material loss on the studio’s most recent film release, John Carter. However, at $200mn the real surprise was the amount, which was much higher than most had anticipated (including us)...Adjusting for the higher John Carter film losses, we are lowering segment EBIT by $152mn to -$115mn for the quarter. Our F2Q EPS estimate drops by an additional $0.05 to $0.51, while FY12 EPS moves to $2.90 (from $2.96 previously)."
"As with last year’s film write down, we believe that one-off charges at the Studio segment are not indicative of the overall health of the company’s core businesses – namely the Media Networks and Parks. We view any pullback in the stock around this higher film loss as an enhanced buying opportunity."
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 $43.44 yesterday.
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