World Wrestling Entertainment Earnings: Here’s Why the Stock is Down Now

World Wrestling Entertainment Inc. (NYSE:WWE) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.85%.

World Wrestling Entertainment Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 56.25% to $0.07 in the quarter versus EPS of $0.16 in the year-earlier quarter.

Revenue: Rose 7.52% to $152.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: World Wrestling Entertainment Inc. reported adjusted EPS income of $0.07 per share. By that measure, the company missed the mean analyst estimate of $0.14. It beat the average revenue estimate of $138.41 million.

Quoting Management: “In the second quarter, we continued to make investments in both staffing and talent to support our long-term growth objectives. These initiatives, including the recent opening of a world-class performance training facility, and the highest grossing WrestleMania in our Company’s history, demonstrate our commitment to develop our talent, build our brands, and provide a solid foundation for future growth,” stated Vince McMahon, Chairman and Chief Executive Officer. “We continue to believe that these investments will enhance our ability to create new programs and to distribute all of our content in a way that optimizes its value, through the renewal of key television contracts and the potential launch of a WWE network.”

Key Stats (on next page)…

Revenue increased 22.82% from $124 million in the previous quarter. EPS increased 75% from $0.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.06 to a profit $0.04. For the current year, the average estimate has moved down from a profit of $0.35 to a profit of $0.30 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)