Analysts mixed on Disney

Disney investors received mixed signals from Wall Street on the heels of its second-quarter earnings.

Analysts broke into two camps over the results, either upgrading the stock or signaling a hold.

The company posted better-than-expected profits on Monday, despite a $ 44 million loss from its stake in Euro Disney. At mid-day, Disney was down $ 1.50 at $ 39.50 on a volume of 555,500 shares, compared with average daily volume of 1.2 million. It closed at $ 40.875, down 12.5 cents on a volume of 2.4 million shares traded.

In the buy camp were Chris Dixon of PaineWebber and Jeffrey Logsdon at Seidler Amdec. Dixon anticipates shorter release times between Disney’s animated features starting next year. Recent earnings have been fueled by the tremendous success of “Aladdin” and “Beauty and the Beast.” Logsdon contended that the market had overreacted to the Euro Disney loss and its expected blood-letting for the remainder of the year. Moreover, he cited a strong summer film slate for positive numbers.

On the downside were Merrill Lynch and Salomon Bros.’ Margo Vignola. Vignola noted that Euro Disney may require a cash investment and there may be less traffic at Disney’s U.S. parks in the second half.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading