WWE Earnings: Beats the Street on Profit Rise
World Wrestling Entertainment Inc. (NYSE:WWE) reported net income above Wall Street’s expectations for the first quarter. 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.
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World Wrestling Entertainment Earnings Cheat Sheet for the First Quarter
Results: Net income for World Wrestling Entertainment Inc. rose to $15.3 million (20 cents per share) vs. $8.6 million (11 cents per share) in the same quarter a year earlier. This marks a rise of 78.2% from the year-earlier quarter.
Revenue: Rose 2.6% to $123.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: World Wrestling Entertainment Inc. reported adjusted net income of 18 cents per share. By that measure, the company beat the mean estimate of 5 cents per share. It beat the average revenue estimate of $113.7 million.
Quoting Management: “In the first quarter, EBITDA grew 19%, reflecting increased profits across all our businesses. Our results were highlighted by the strong performance of our live events as we entered a new market in the Middle East. We are very pleased that our positive first quarter execution continued in April with the successful staging of WrestleMania, which is expected to deliver nearly 1.3 million pay-per-view buys globally,” stated Vince McMahon, Chairman and Chief Executive Officer. “Through the first quarter, we made important progress on our key strategic initiatives, developing our foundation for creating and distributing new content, and building on our tremendous brand strength, especially in social media. Looking ahead, we are confident that we will leverage the broad appeal of our content to transform our business and drive long-term earnings growth.”
A year-over-year revenue increase last quarter snaps a streak of two consecutive quarters of revenue declines. Revenue fell 7.8% in the fourth quarter of the last fiscal year and fell 1% in the third quarter of the last fiscal year.
The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 2 cents versus a mean estimate of net income of 11 cents per share.
Gross margins grew to 44.4% last quarter, a 5.5 percentage points difference from the year-earlier quarter. This snaps a streak of two consecutive quarters of shrinking margins.
The company reported a profit last quarter after being in the red the prior quarter. In the third quarter of the last fiscal year, the company booked a net loss of $10.6 million, or a loss of 14 cents per share.
Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 18 cents per share, down from 25 cents ninety days ago. The average estimate for the fiscal year is 39 cents per share, down from 71 cents ninety days ago.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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