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

  • Unanimous Media Jeron Smith

    Listen: Stephen Curry's Right-Hand Man in Hollywood Talks Their Content Strategy

    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 […]

  • PBS 2015 Winter TCA

    Harvey Weinstein Seeks Dismissal of Ashley Judd Blacklist Suit

    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 […]

  • Red Bull Music Festival

    Red Bull Music Festival Berlin Announces 2018 Lineup

    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 […]

  • Will Smith arrives at the U.S.

    Will Smith, Japanese Soccer Star Keisuke Honda Launch Dreamers Fund

    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 […]

  • Matt Sawin Capitol Music Group

    Caroline Names Matt Sawin Executive VP

    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 […]

  • Universal Music Group

    Universal Music Launches Nigerian Division

    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