Analyst Andrew Slabin says the 2002 results were great, but the 2003 view is bittersweet.
Also, given the increase in an options exercise, Slabin expects a 10-cent 2003 earnings per share dilution from an increase in shares. He thinks greater-than-expected Monsters home video sales in 2002 stole revenue and profits from 2003. Plus, he says the domestic free-TV sale of Monsters will fall in 2004, not 2003, and this represents an earnings per share swing of up to 15 cents to 20 cents.
Slabin cut the $1.68 2003 earnings per share estimate to $1.39. He also cut the $67 target to $63. However, he still rates the shares as buy.