World Wrestling Entertainment, Inc. Quarterly Earnings Sneak Peek

World Wrestling Entertainment, Inc. (NASDAQ:WWE) will unveil its latest earnings on Thursday, August 4, 2011. World Wrestling Entertainment, engaged in the development, production and marketing of television and pay-per-view event programming and live events and the licensing and sale of consumer products featuring its World Wrestling Entertainment brands.

World Wrestling Entertainment, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 24 cents per share, a rise of more than twofold from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 25 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 24 cents during the last month. For the year, analysts are projecting profit of 67 cents per share, a decline of 5.6% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 15 cents per share versus a mean estimate of profit of 14 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $138.5 million in revenue this quarter, a rise of 29.6% from the year ago quarter. Analysts are forecasting total revenue of $487.3 million for the year, a rise of 2% from last year’s revenue of $477.7 million.

Analyst Ratings: Analysts seem relatively indifferent about World Wrestling Entertainment with four of six analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income fall in each of the last two quarters. In the first quarter, net income fell 65.2% from the year earlier quarter, while the figure dropped 27.2% in the fourth quarter of the last fiscal year.

Over the last four quarters, revenue has fallen an average of 8.4% year over year. The biggest drop came in the second quarter of the last fiscal year, when revenue fell 23% from the year earlier quarter.

The company’s gross margin shrank by eight percentage points in the in the first quarter. Revenue fell 13.6% while cost of sales fell 0.6% to $73.2 million from a year earlier.

Competitors to Watch: CKX Inc. (NASDAQ:CKXE), CBS Corporation (NYSE:CBS), Time Warner Inc. (NYSE:TWX), Lions Gate Entertainment Corp. (NYSE:LGF), News Corporation (NASDAQ:NWSA), Live Nation Entertainment, Inc. (NYSE:LYV), DreamWorks Animation SKG, Inc. (NASDAQ:DWA), Madison Square Garden, Inc. (NASDAQ:MSG) and Cinedigm Digital Cinema Corp. (NASDAQ:CIDM).

Stock Price Performance: During June 30, 2011 to July 29, 2011, the stock price had risen 54 cents (5.7%) from $9.53 to $10.07. The stock price saw one of its best stretches over the last year between March 18, 2011 and March 28, 2011 when shares rose for seven-straight days, rising 6.1% (+72 cents) over that span. It saw one of its worst periods between August 4, 2010 and August 16, 2010 when shares fell for nine-straight days, falling 15.4% (-$2.33) over that span. Shares are down $3.62 (-26.4%) year to date.

(Source: Xignite Financials)

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