Bob Iger, chairman and CEO of the Walt Disney Company
Harriet Taylor | CNBC
UBS on Thursday reduced its fourth-quarter earnings projections for Disney, but maintained an optimistic long-term outlook, advising clients to stick with shares of the media giant.
"After reviewing operating trends, we are cutting F4Q EPS [fiscal fourth quarter earnings per share] $0.08 to $1.11, or -8 percent Y/Y [year over year]," wrote equity analyst Doug Mitchelson in a research note.
"Our new forecast is for EBIT [earnings before interest and taxes] to be down $347m Y/Y, suggesting that Disney will be essentially flat Y/Y on a core basis," Mitchelson forecasts.
But following what the analyst predicts may be a challenging quarter, investors will turn their attention to Disney's long-term opportunities, he said.
