Disney stock takes a tumble

Analyst's report sets off sale

NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip.

Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of $128.38 reached in late April when Disney not only reported a stock split and stronger-than-expected second-quarter earnings but sounded extremely bullish to the investment community while discussing its lineup of animated movies.

Pigskin price high

Goldman Sachs analyst Richard Simon cited two reasons Thursday for reducing his earnings estimate to $3.10 a share for full-year 1998: An “increasing concern” over the $4.4 billion that Disney’s ABC television network paid for its eight-year pact with the National Football League and “a more conservative look at the film business.”

Simon hastened to add that his revised take on Disney was “a near-term issue, not long-term.”

Disney traded as low as 74 in the past year before climbing to a level that now attaches an exceedingly rich multiple — by historical standards — of 127.15 times earnings to the stock.

“Given the combination of the stock run-up and the multiples being at record highs, and that we lowered numbers, leads us to believe there’s some price exposure,” Simon said.

More Biz

  • pandora

    Pandora Names Aimée Lapic Chief Marketing Officer

    NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip. Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of […]

  • NFL players suspension

    NFL Network Suspends On-Air Analysts Amid Sexual Harassment Probe

    NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip. Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of […]

  • Get Hard

    Writer Claims 'Get Hard' Ripped Off His 'Prison 101' Idea

    NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip. Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of […]

  • Tax Plan Strikes Fear Among Below

    Hollywood's Below-the-Line Workers Anxious About New Tax Plans

    NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip. Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of […]

  • Bill Hearn, CEO of Capitol Christian

    Bill Hearn, Chairman of Capitol Christian Music Group, Dies at 58

    NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip. Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of […]

  • Time Square Station Explosion

    NYPD Investigating Explosion in Times Square Station, Suspect in Custody

    NEW YORK — Shares of Walt Disney Co. tumbled 4% Thursday on more than double the average volume as a leading Wall Street analyst shaved a dime off his earnings estimate for the entertainment blue chip. Disney shares closed at $119.25 — down $4.94 on the day and considerably more from the yearlong high of […]

More From Our Brands

Access exclusive content