World Wrestling Entertainment
The 10-second takeaway
For the quarter ended March 31 (Q1), World Wrestling Entertainment beat slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. Non-GAAP earnings per share dropped significantly. GAAP earnings per share shrank significantly.
Margins shrank across the board.
World Wrestling Entertainment chalked up revenue of $124.0 million. The three analysts polled by S&P Capital IQ wanted to see revenue of $121.7 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.05. The two earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. Non-GAAP EPS of $0.05 for Q1 were 72% lower than the prior-year quarter's $0.18 per share. GAAP EPS of $0.04 for Q1 were 80% lower than the prior-year quarter's $0.20 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 39.6%, 540 basis points worse than the prior-year quarter. Operating margin was 4.9%, 870 basis points worse than the prior-year quarter. Net margin was 2.4%, much worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $144.2 million. On the bottom line, the average EPS estimate is $0.18.
Next year's average estimate for revenue is $505.0 million. The average EPS estimate is $0.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 433 members out of 545 rating the stock outperform, and 112 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give World Wrestling Entertainment a green thumbs-up, and 29 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.
Is World Wrestling Entertainment the right retailer for your portfolio? Learn how to maximize your investment income and ""Secure Your Future With 9 Rock-Solid Dividend Stocks,"" including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add World Wrestling Entertainment to My Watchlist.
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 position in any of the stocks mentioned. 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.