Merrill cut estimates on Walt Disney (DIS).
Analyst Jessica Reif Cohen says she believes the third quarter revenue and cash flow impact to Disney as result of Adelphia Cable's financial woes will be roughly $50 million. She says the company will be harder hit than peers, given its more expensive networks such as ESPN.
She thinks marketing costs related to the release of its animated film Lilo & Stitch will weigh on film segment results. Reif Cohen notes the bankruptcy of Kirch Media and poor film performance, specifically the performance of Bad Company. She cut her $0.20 3Q EPS estimate to $0.17, and trimmed the $0.65 fiscal 2002 (Sept.) estimate to $0.61.