UBS Warburg cut its earnings estimates on Walt Disney (DIS) after the entertainment company posted "dismal" fourth quarter results. The company reported fourth quarter earnings per share of $0.03 versus $0.11 in the year ago quarter. Analyst Christopher Dixon said the results relfect ratings weakness at ABC and the impact of slowing travel at Disney theme parks.
Dixon sees dismal near term operating outlook due to continued weakness at ABC Network division, uncertainty relating to rebound at both theme park and consumer products divisions. He cut fiscal year 2002 cash earnings per share estimates to $0.75 from $0.80 and sees fiscal year 2003 estimate at $1.00 FY 03. He maintains $23 1-year target. He added that he sees little further downside from recent trading levels. He rates the stock a buy.