) posts 5 cents, vs. 14 cents second-quarter earnings per share. Jefferies downgraded the stock to underperform from hold.
Analyst Rob Routh says second-quarter results were below expectations primarily due to a decline in revenue for home video, international TV, and product licensing. He believes in management's ability to identify popular children's properties, and efforts in repurchasing stock, but advises investors to sit on the sidelines until clarity regarding its future from an operating perspective develops.
Routh sees fair value for the shares at $15.25, 23% less than the closing price. He cuts 2005 EPS estimate to 56 cents from 85 cents and 2006 EPS forecast to 80 cents from $1.09.