World Wrestling Entertainment
The 10-second takeaway
For the quarter ended March 31 (Q1), World Wrestling Entertainment beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved slightly and GAAP earnings per share improved significantly.
Gross margins improved, operating margins shrank, net margins grew.
World Wrestling Entertainment logged revenue of $123.1 million. The one analyst polled by S&P Capital IQ looked for revenue of $115.8 million on the same basis. GAAP reported sales were 2.6% higher than the prior-year quarter's $119.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.18. The one earnings estimate compiled by S&P Capital IQ predicted $0.06 per share. GAAP EPS of $0.20 for Q1 were 82% higher than the prior-year quarter's $0.11 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 44.4%, 320 basis points better than the prior-year quarter. Operating margin was 13.0%, 30 basis points worse than the prior-year quarter. Net margin was 12.5%, 530 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $143.3 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $483.6 million. The average EPS estimate is $0.44.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 439 members out of 544 rating the stock outperform, and 105 members rating it underperform. Among 112 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 80 give World Wrestling Entertainment a green thumbs-up, and 32 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 $12.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.