Analyst predicts drop in Disney attendance this year

Posted Tuesday, February 5, 2008 9:41 AM | Contributed by Jeff

The world's biggest theme-park operator may post a 6.7 percent drop in resort-unit operating profit to $1.6 billion this fiscal year, estimates Citigroup Inc. analyst Jason Bazinet. He anticipates the stock, down 10 percent to $30.90 since Sept. 30, may fall 16 percent more to $26. Analysts' average forecast is $38.56. Iger has defied Disney's historical sensitivity to U.S. GDP, lifting resort profit 45 percent in his first two years as CEO with promotions and higher ticket prices. Last year he began overhauling the California Adventure theme park next to Disneyland, ordered two cruise ships and bought 21 acres in Oahu for an 800-room beachfront Hawaiian resort. Investors will comb first-quarter results today to gauge impact from the slowdown.

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