Disney revenue miss due to shortfall at Media Networks, says Loop Capital
Loop Capital analyst David Miller says Disney's revenue miss was largely the result of a notable shortfall at Media Networks, where sales of $5.46B were down 3.4% on the year largely because of lower advertising sales at ABC. Media's EBIT result was constrained by higher NBA rights costs, says the analyst, adding that Disney CFO has also warned that ESPN ad sales are pacing down in Q1. Miller notes that Disney's Theme Parks division is performing well, with Q4 revenues rising 6.4% thanks to higher occupancy levels at both Orlando and Anaheim along with the effects of surge pricing. The analyst keeps his Hold rating and nudges the price target to $104 from $103 following Q4 results.