JPMorgan slashed its earnings forecast for Disney and warned that further cuts could come in the future.
The firm lowered its fourth-quarter earnings-per-share estimate to $0.95 from $1.05, citing increased spending ahead of Disney’s streaming launch and the costly integration of Fox assets.
The revision comes as Disney is preparing to release its direct-to-consumer streaming service on November 12.
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JPMorgan slashed its earnings forecast for Disney and warned that further cuts may come in the future as the company rolls out its streaming platform.
The bank said it now expects Disney to generate $0.95 in earnings per share during the fourth quarter, down from a previous forecast of $1.05. JPMorgan also lowered its fiscal 2020 EPS estimate to $5.50 from $6.30.
“The investment spending in Disney’s direct to consumer platforms and the choppy integration of Fox’s assets lead to more uncertainty in the financial outlook near term,” JPMorgan said in a note to clients on Wednesday.
The firm continued: “Estimate revisions will likely be frequent and sometimes notable over the next few quarters given so many moving pieces both internally and externally as this integration and media consumption evolution proceeds.”
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Source:: Businessinsider – Finance