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Technology Stocks : Walt Disney -- Ignore unavailable to you. Want to Upgrade?

To: Dorine Essey who wrote (648)	6/22/1998 3:52:00 PM
From: Zoltan!	Respond to of 2222

Looks like you have good timing. Disney Rebounds After Analysts Cut Erns Views, Ratings By Dwight Oestricher NEW YORK (Dow Jones)--Concerns that fewer people are streaming into theaters showing its movies and into its theme parks has moved analysts to cut ratings and earnings estimates on Walt Disney Co. (DIS). Shares of Disney they dipped to an intraday low of 104 1/2 Monday after NationsBanc Montgomery Securities Inc. analyst John Tinker cut his rating to hold from buy, and Brown Brothers Harriman & Co. analyst Mary Ann Winter cut her long-term view to neutral from buy. The shares recently have rebounded, however, trading up 3/4, or 0.7%, to 108 5/16. "I was reluctant to do it because I think the long-term view of three to five years is outstanding," Winter said. "The problem is that the next few quarters will prove to be nail-biting time." Winter, who maintained her short-term neutral rating on Disney, cut her earnings estimate for fiscal 1998, ending in September, to $3 a share from $3.15 and her 1999 view to $3.55 from $3.70 a share. Disney seems to be experiencing below-trend revenue growth in Japan related to a drop in consumer merchandise sales, Winter said. "That is a concern because the economy there is in a recession," she said. The drop in Disney's stock price follows a fall of 4 7/16, or 4%, to a close of 107 9/16 Friday. Goldman Sachs & Co. cut its fiscal 1998 earnings estimate to $3 from $3.10 a share Friday, and warned that there is "increasing risk" to its 1999 projection of $3.65 a share. In a research summary, Goldman analyst Richard Simon cited weaker-than-expected Disney World attendance plus pre-opening expenses and higher fixed-costs of Animal Kingdom Park for the lower earnings view. The summary added that earnings for the creative content division have been pressured by the disappointing box-office of "The Horse Whisperer," and "Six Days Seven Nights" - two relatively expensive films. Competition with the World Cup games in Europe also hurt the international results for "Starship Troopers" and "Flubber," the summary added. Disney remained on Goldman's Recommended List due to its long-term potential, the summary said. Also Friday, Bear Stearns & Co. analyst Ray Katz maintained his attractive rating on Disney while cutting earnings estimates. And on Monday, Salomon Smith Barney analyst Jill Krutick kept her buy rating on Disney while cutting earnings estimates. Krutick cut her 1998 operating income estimate to a range of $3 to $3.05 a share from $3.17, citing mixed box-office, tough home video comparisons, tepid broadcasting results, as well as concerns about theme parks and Asia. She also reduced her 1999 projection to $3.60 from $3.75 a share. Krutick added in a research summary that Disney could clearly exceed this forecast should any of the multitude of creative content products strike gold. She noted that Disney has several major fall releases, including "A Bug's Life" and a direct-to-video sequel to "The Lion King." Disney's current animated feature, "Mulan," was the No. 2 domestic box-office leader over the weekend, taking in about $23 million. Krutick added that theme parks could "ignite" over the summer and that improvement in the ABC television network's prime time schedule could translate into a rally in the stock. Shares of Disney were recently up 3/4, or 0.7%, at 108 5/16 on volume of 4.6 million shares, compared with average daily volume of 2 million. interactive.wsj.com