Walt Disney Co., the world’s largest theme-park company, fell the most in almost 10 years in New York after Wunderlich Securities cut its rating on the stock to “hold” from “buy” following its quarterly earnings report.
The stock dropped $4.33 to $30.37 as of 9:52 a.m. in New York Stock Exchange composite trading after touching $29.60 for the biggest intraday decline since Sept. 20, 2001.
TV station advertising sales are down by a mid-single digit percentage this quarter, the company said yesterday on a conference call after the market closed. Net income rose 11 percent to $1.48 billion, or 77 cents a share, in the period ended July 2, Burbank, California-based Disney said yesterday in a statement.
“Earnings upside was less than met the eye,” Barton Crockett, an analyst at Lazard Capital Markets in New York, said in a note to investors. The fiscal fourth-quarter oulook is “muddied,” said the analyst, who rates the stock “neutral.”
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