Cramer Calls Disney Sell-Off an Overreaction, Flags Linear TV as a Persistent Drag

He says clearer acknowledgment of problems on the earnings call could have limited the drop.

Overview

Disney’s fiscal fourth-quarter revenue came in at $22.46 billion versus $22.75 billion expected, with adjusted EPS of $1.11 topping the $1.05 estimate as shares fell about 7% on the day.
Cramer argued the sharp decline stemmed largely from ongoing weakness in legacy linear television as younger audiences continue to move away from the format.
He criticized CFO Hugh Johnston’s message on the call, saying a frank admission of issues might have reduced the sell-off to roughly 4%–5%.
Cramer highlighted a dividend increase and a share buyback as positives and floated the idea of an accelerated repurchase program.
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