World Wrestling Entertainment, Inc. Third Quarter Earnings Sneak Peek

World Wrestling Entertainment, Inc. (NYSE:WWE) will unveil its latest earnings on Thursday, November 1, 2012. World Wrestling Entertainment is 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 analyst estimate is for net income of 4 cents per share, a decline of 78.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from 3 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 4 cents during the last month. Analysts are projecting profit to rise by 32.8% versus last year to 39 cents.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 3 cents, reporting profit of 17 cents per share against a mean estimate of net income of 14 cents. In the first quarter, the company exceeded forecasts by 12 cents with profit of 18 cents versus a mean estimate of net income of 6 cents.

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A Look Back: In the second quarter, profit fell 16.3% to $11.9 million (16 cents a share) from $14.3 million (19 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 0.6% to $141.6 million from $142.6 million.

Stock Price Performance: Between August 30, 2012 and October 26, 2012, the stock price had fallen 38 cents (-4.5%), from $8.53 to $8.15. It saw one of its worst periods between September 20, 2012 and October 1, 2012 when shares fell for eight straight days, dropping 8% (-70 cents) over that span. The stock price saw one of its best stretches over the last year between August 14, 2012 and August 20, 2012, when shares rose for five straight days, increasing 2.1% (+18 cents) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.69 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 2.6% in the the first quarter after dropping in the second quarter.

Analyst Ratings: There are mostly holds on the stock with four of five analysts surveyed giving that rating.

Wall St. Revenue Expectations: Analysts are projecting a decline of 0% in revenue from the year-earlier quarter to $108.5 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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