Legg Mason Downgrades Univision

Analyst Sean Butson says the media company is clearly struggling now

Univision Communications (UVN ) reported second-quarter earnings per share of 24 cents, excluding charges. Legg Mason downgraded the stock to hold from buy.

Analyst Sean Butson says the company is clearly struggling now, with second-quarter results that significantly missed his estimates. He notes the company experienced particular weakness in its TV business.

He adds that the company offered very weak third-quarter guidance, and therefore he cuts $2 billion 2005 revenue forecast to $1.94 billion and $686 million EBITDA estimate to $654 million EBITDA.

Although Univision's TV operations are outperforming its English language peers, two of last three quarters have significantly undeperformed expectations and more of the same is expected in the third quarter.

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