Analyst sees Disney theme park woes
By Jon Friedman
4:29 PM ET Nov. 1, 2002
NEW YORK (CBS Marketwatch) -- Walt Disney Co. earnings may be undermined by weakness in its flagship theme park division, though strength in other segments should provide some balance, said analyst Jordan Rohan of SoundView Technology Group.
Walt Disney (DIS: news, chart, profile), a Dow 30 component, is scheduled to report its quarterly earnings Thursday, after the market's close.
"Strength in TV advertising and home video will offset weakness at the Parks and Resorts (unit)," said Rohan in an investment report Friday.
Disney's shares rose 2 percent on Friday, gaining 33 cents to $17.03.
"ABC ratings have stabilized," Rohan said. "Looking ahead, further park attendance declines, ratings erosion and the potential for a fade in TV advertising trends lend some risk to our (fiscal third-quarter) outlook."
Disney has been hampered in recent quarters by the economic slowdown. Disney is one of the more complex companies in the "media" industry. Its vast holdings include its trademark Disney theme parks, motion pictures and home videos, ABC and ESPN broadcasting, consumer retail interests and book publishing.
Pure earnings numbers aside, Disney is riding high these days after the recent World Series victory by the Anaheim Angels, one of its properties.
Rohan is forecasting fiscal second-quarter earnings per share of 56 cents, which is in line with Wall Street's estimates. He also said he's maintaining a "neutral" investment rating.
"Short-term, we see positives from Studio and Home Video," Rohan said. He noted that Disney is considering the sale of non-core assets, including radio stations and its sports franchises, to ease its debt burden.
By Jon Friedman
4:29 PM ET Nov. 1, 2002
NEW YORK (CBS Marketwatch) -- Walt Disney Co. earnings may be undermined by weakness in its flagship theme park division, though strength in other segments should provide some balance, said analyst Jordan Rohan of SoundView Technology Group.
Walt Disney (DIS: news, chart, profile), a Dow 30 component, is scheduled to report its quarterly earnings Thursday, after the market's close.
"Strength in TV advertising and home video will offset weakness at the Parks and Resorts (unit)," said Rohan in an investment report Friday.
Disney's shares rose 2 percent on Friday, gaining 33 cents to $17.03.
"ABC ratings have stabilized," Rohan said. "Looking ahead, further park attendance declines, ratings erosion and the potential for a fade in TV advertising trends lend some risk to our (fiscal third-quarter) outlook."
Disney has been hampered in recent quarters by the economic slowdown. Disney is one of the more complex companies in the "media" industry. Its vast holdings include its trademark Disney theme parks, motion pictures and home videos, ABC and ESPN broadcasting, consumer retail interests and book publishing.
Pure earnings numbers aside, Disney is riding high these days after the recent World Series victory by the Anaheim Angels, one of its properties.
Rohan is forecasting fiscal second-quarter earnings per share of 56 cents, which is in line with Wall Street's estimates. He also said he's maintaining a "neutral" investment rating.
"Short-term, we see positives from Studio and Home Video," Rohan said. He noted that Disney is considering the sale of non-core assets, including radio stations and its sports franchises, to ease its debt burden.
