Analysts Lowering Disney Forecasts

Some analysts are lowering their outlook for Walt Disney Co. because of poor film results, fewer international tourists visiting its theme parks and exposure to the financial woes of Adelphia Communications Corp.

Media analyst Jessica Reif Cohen of Merrill Lynch said Thursday that she lowered her operating income estimate for Disney’s fiscal third quarter, ending this month, by $50 million, to $830 million, and her per-share earnings estimate from 20 cents to 17 cents. For the year, Cohen cut her earnings estimate from 65 cents to 61 cents.

The report helped push down Disney shares to a seven-month low. The shares Thursday lost $1.30 to close at $19.56 on the New York Stock Exchange amid a broad decline in the market as investors reacted to concerns about a slowdown in consumer spending.

Cohen cited mostly unforeseen items, including debt problems of Adelphia and the bankruptcy of Germany’s KirchMedia--both major Disney customers. Losses from Adelphia could cost Disney about $50 million.

Also hurting Disney this quarter is the poor performance of “Bad Company,” the Jerry Bruckheimer movie starring Anthony Hopkins and Chris Rock.

It cost more than $100 million in production and marketing and has generated only $24 million at the box office since its June 7 release.

“The only thing I can attribute it to is that it’s a highly competitive marketplace this summer,” said Paul Dergarabedian, president of Exhibitor Relations Co., an Encino-based box office tracking firm.

The studio is expected to get a lift, however, from its animated feature “Lilo & Stitch,” which premieres today.

Several other analysts have lowered their outlook on Disney in recent weeks, including Jordan Rohan of SoundView Technology Group, who cut his third-quarter estimate for Disney to 15 cents from 20 cents and his yearly projection to 55 cents from 66 cents.

Also hurting Disney, Rohan said, is a ratings slide at Disney-owned TV network ABC and a dip in theme park attendance.