7/31/2009 - Walt Disney Co.'s (NYSE:DIS) shares fell 3.7% in afternoon trading Friday after being downgraded by a J.P. Morgan analyst and after the media company reported lower-than-expected quarterly profit, which caused worries that business growth remains elusive for now and will continue to negatively affect earnings in the following quarters. Analyst Imran Khan downgraded Disney to "underweight" from "neutral" citing advertising weakness at the company's ESPN cable network, which could affect beyond fiscal year 2009, as well as a decrease in bookings at theme parks in Q4. Khan added that weak consumer spending will not help the consumer products division, including revenue from merchandise licensing and Disney stores. The analyst cut his fiscal year 2010 revenue estimate to $36.1 billion from $36.7 billion and his EPS estimate to $1.78 per share, down from $1.96 per share.

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