Lehman Trims Disney Estimates, but Sees Upside to Stock

Lehman Brother's Stuart Linde trimmed his estimates on Walt Disney's(DIS Quote) earnings for the current year and next fiscal year, but said the stock was becoming more attractive now that miscued hype over its summer's blockbuster bomb has subsided.

"We are moderating our Disney 4Q01 and 2002 estimates to reflect the current weak TV ad market and softness at the theme parks," Linde wrote in a note today. Saying the theme park business generally lags behind the rest of the economy, Linde wrote: "Investors are clearly worried about the near-term results from the theme parks, which is likely to create some near-term weakness but possibly provide a long-term buying opportunity."

He shaved a penny off his fourth-quarter 2001 earnings estimate to 15 cents a share from 16 cents, bringing the full-year estimate to 79 cents a share. He also lowered his estimates on each of the first three quarters of 2002, effectively cutting his full fiscal year 2002 earnings expectations to 89 cents a share from 94 cents a share. ...