Entertainment Analyst Cuts Earnings Estimates Through 2022 Amid Virus Crisis

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Cowen analyst Doug Creutz cut his earnings estimates for such entertainment giants as Walt Disney and ViacomCBS, along with Fox Corp., AMC Networks, Discovery and Lionsgate, through 2022 due to the coronavirus and its longer-term fallout. Details:

Cowen's Doug Creutz also lowers stock price targets, citing"the impact of heavy social-distancing measures and the impact of the resulting recession that we expect."

Creutz highlighted that theme parks were "in for heavy damage" and would "likely take several years to recover," while "film results will see some impact from both the closure of cinemas and the shutdown of most film production, though we expectMeanwhile, with TV production also suffering disruption, "we expect a bit of revenue pressure there as well," the analyst noted.

He trimmed his earnings per share, operating income and revenue estimates for fiscal year 2021 by 38 percent, 34 percent and 12 percent, respectively. For fiscal 2022, Creutz's earnings per share, operating income and revenue estimates are down by 26 percent, 25 percent and 9 percent, respectively. But he lauded the company's balance sheet, saying: "With $6.

 

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