JP Morgan Cuts its Estimates for Disney Earnings

According to JP Morgan, Disney’s earnings may not be so good. The firm has cut its estimates on the company’s earnings and has warned that other analysts may follow suite.

JP Morgan says that with massive spending on the new streaming platform and the costly integration of Fox, Disney is putting its stock at a vulnerable place in the near-term.

JP Morgan has cut its expectations for fourth quarter earnings from $1.05 a share to $0.95 and has slashed its full year 2020 earnings estimates from $6.30 a share to $5.50 a share.

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 added, “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.”

Analyst Alexia Quadrani has reiterated an Overweight rating and $150.00 price target on the stock.
Disney’s Disney+ streaming platform is set to launch next month.

Shares of Disney are up more than 17% year-to-date.

Disclaimer: We have no position in Walt Disney Co. (NYSE: DIS) mentioned and have not been compensated for this article.