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Despite A Couple Box Office Duds, Disney's Q3 Revenue Expected To Be Studio's All-Time High

Despite A Couple Box Office Duds, Disney's Q3 Revenue Expected To Be Studio's All-Time High - Walt Disney Company The NYSE:DIS

Walt Disney Co DIS 1.14% is scheduled to announce its Q3 results next Tuesday. Ahead of the report, analysts at Deutsche Bank updated their model, reiterating a Hold rating and $115 price target on shares.

For the quarter, the firm now expects EPS of $1.54, down from a previous estimate of $1.62, to reflect a slightly lower-than-expected box office, especially for "Alice Through The Looking Glass" and "The BFG."

Leaving these two movies aside, the anlaysts think this was a “banner studio quarter.” In fact, they expect an all-time high revenue for the studio business, driven by "Captain America: Civil War," "Junglebook," "Zootopia," and "Finding Dory." Deutsche Bank is now modeling $2.7 billion in studio revenue (about $500 million lower than they expected previously) and $818 million in segment OI.

The firm also decided to tweak its broadcast estimate for ABC to +4 percent (up from +2 percent). The analysts "think ratings weakness at ABC will be more than offset by an extra NBA Finals game and strong scatter pricing. At ESPN and the cable networks, we've come down to +3% (from +5%) given some relative ratings weakness at Freeform and the ad-supported Disney channels."

Shares traded recently at $95.99, up 1 percent.

DateFirmActionFromTo
Jul 2016FBR CapitalDowngradesOutperformMarket Perform
Jul 2016Stifel NicolausDowngradesBuyHold
Jul 2016Morgan StanleyMaintainsEqualweight

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