World Wrestling Entertainment
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), World Wrestling Entertainment missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share shrank significantly.
Margins dropped across the board.
World Wrestling Entertainment reported revenue of $104.2 million. The five analysts polled by S&P Capital IQ looked for sales of $109.0 million on the same basis. GAAP reported sales were 4.0% lower than the prior-year quarter's $108.5 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 $0.07. The four earnings estimates compiled by S&P Capital IQ anticipated $0.05 per share. GAAP EPS of $0.05 for Q3 were 64% lower than the prior-year quarter's $0.14 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 41.1%, 320 basis points worse than the prior-year quarter. Operating margin was 4.8%, 1,360 basis points worse than the prior-year quarter. Net margin was 3.4%, 640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $115.5 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $488.5 million. The average EPS estimate is $0.50.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 437 members out of 544 rating the stock outperform, and 107 members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 89 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 $11.67.
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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. The Motley Fool has no positions in the stocks mentioned above. 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.