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 0.22%.

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World Wrestling Entertainment Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 75% to $0.05 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 0.76% to $124 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: World Wrestling Entertainment Inc. reported adjusted EPS income of $0.05 per share. By that measure, the company missed the mean analyst estimate of $0.07. It beat the average revenue estimate of $121.96 million.

Quoting Management: “In the first quarter, our performance reflected investments to enhance our brand strength, which we view as a critical determinant of our long-term growth,” stated Vince McMahon, Chairman and Chief Executive Officer. “Operating metrics such as pay-per-view buys and live event attendance, which are key leading indicators, continued to show improvement. Demonstrating the ongoing demand for WWE content, we successfully staged WrestleMania in April, which attracted more than 80,000 fans and is expected to deliver more than one million pay-per-view buys globally, ranking the event as the highest grossing and most profitable pay-per-view event in our history. Looking ahead, we are confident that we can leverage this demand to transform our business.”

Key Stats (on next page)…

Revenue increased 7.73% from $115.1 million in the previous quarter. EPS increased 400% from $0.01 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 $0.21 to a profit $0.17. For the current year, the average estimate has moved down from a profit of $0.5 to a profit of $0.35 over the last ninety days.

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

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