WWE Gets Off The Mat With Big Q2 Beat, Strong Subscriber Numbers
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
World Wrestling Entertainment, Inc. (NYSE: WWE) shares were trading sharply higher by $3.12 (18 percent) at $19.60 in Thursday's session. The catalyst for the rally is a Q2 beat for EPS ($0.07 vs. a loss of $0.02 estimates) with better-than-expected revenues ($150.2 million vs. $148.7 million).
The Street is also applauding the fact that WWE Network averaged over one million paid subscribers in the second quarter, a 31 percent improvement from the first quarter.
Investors immediately bought up the issue in the pre-market session, surging from Monday's close ($16.48) to $20 before retreating to the $18 level by the opening of the regular session.
Its opening print ($18.16) was the dead low and an explosive rally to $20.50 followed. Since making that high, it has fallen back under $20. The high represents the highest level for the issue since May 2014, when it peaked at $20.86 before tumbling to $9.82 by January.
Today's rally is taking place on much higher than average volume. So far, 1.8 million shares have changed hands compared to its 20-day average of 482,000 with fours hours remaining the session.
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