Michael Pachter: WWE Losing Momentum and the Dividend is At Risk
According to analyst Michael Pachter at Wedbush Morgan, World Wrestling Entertainment (NYSE:WWE) is losing momentum and their dividend is at risk.
Here’s Pachter’s bullet points for WWE’s negative pre-earnings announcement:
- We are lowering our rating on shares of WWE to NEUTRAL from OUTPERFORM to reflect the company’s weak business momentum and our concern that its dividend may not be sustainable.
- After market close last Friday, WWE preannounced weak Q4:10 results.
- We are lowering our estimates to reflect recent weak business momentum.
- WWE’s most recent Key Performance Indicators presentation (dated 12/21) suggests declining Live Event attendance and pay-per-view (PPV) figures.
- WWE’s business segments continue to struggle due to changes in its talent base, economic weakness, and increased competition.
- WWE may reduce its dividend.
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