- Nomura says some tough comps are coming next month for Disney (DIS -1.3%), even if it still likes the stock overall.
- Last year's Q3 (ending in August) benefited from World Cup ad dollars, and consumer products are likely to be skewed to Q4 this year with Star Wars events coming in September and beyond, note analysts Anthony DiClemente and Benjamin Black.
- The two lowered their Q3 EPS estimate to $1.39, from $1.44 (vs. a consensus of $1.43). Their full-year forecast is unchanged and Nomura's price target on the stock of $125 implies an 8% upside from today's price.
- Frozen makes for tough comparisons both in consumer products and considering its Q3 international home entertainment release last year. And the pair expects that despite the success of Avengers: Age of Ultron and Inside Out, "given the soft Tomorrowland box office showing, we now expect the Frozen comp to more than offset theatrical. As such, we are lowering our F3Q15E Studio OI growth estimate to -19% YoY."
- Previously: Disney wins tax break in exchange for $1B theme park investment (Jul. 08 2015)
- Previously: Disney starts Playmation toy demos, preorders; stock at record high (Jul. 07 2015)
- Previously: 'Tomorrowland' leads a weaker holiday box office (May. 25 2015)