World Wrestling Entertainment (NYSE: WWE ) reported earnings on Feb. 23. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), World Wrestling Entertainment missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
World Wrestling Entertainment reported revenue of $112.9 million. The five analysts polled by S&P Capital IQ predicted revenue of $117.5 million on the same basis. GAAP reported sales were 7.8% lower than the prior-year quarter's $122.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.02. The two earnings estimates compiled by S&P Capital IQ anticipated $0.07 per share on the same basis. GAAP EPS were -$0.12 for Q4 versus $0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.5%, 1,670 basis points worse than the prior-year quarter. Operating margin was -11.6%, 2,340 basis points worse than the prior-year quarter. Net margin was -7.6%, 1,420 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $117.7 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $497.2 million. The average EPS estimate is $0.67.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 442 members out of 550 rating the stock outperform, and 108 members rating it underperform. Among 127 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 give World Wrestling Entertainment a green thumbs-up, and 38 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on World Wrestling Entertainment is hold, with an average price target of $12.50.
Over the decades, small-cap stocks like World Wrestling Entertainment have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.