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Pro Analysis

Analyst cuts Disney sales estimates on weak movie box office sales

Pirates of the Caribbean: Dead Men Tell No Tales
Source: Disney
Pirates of the Caribbean: Dead Men Tell No Tales

Cowen reduced its sales forecast for Walt Disney this year due to weaker-than-expected movie box office, lower television ratings and fewer NBA playoff games.

The firm trimmed its fiscal 2017 revenue estimate for the entertainment giant to $56.1 billion from $56.6 billion.

"We expect studio profitability to rebound to peak levels in FY18 based on a strong slate that includes Star Wars 8 and Avengers 3," Cowen analyst Doug Creutz wrote in a note to clients Wednesday. "However, we continue to believe that the studio is operating at roughly peak profitability, given its utter dominance of the industry."