Market Overview

WWE Continues Climb With Big Q2 Sales Beat, Analyst Sees More Room To Run

Share:
WWE Continues Climb With Big Q2 Sales Beat, Analyst Sees More Room To Run
Related WWE
Jim Cramer Advises His Viewers On GEO Group, Nokia, WWE And More
WWE's Volatile Week: Rousey Reigns, Cena Backs Out, Hogan Returns

World Wrestling Entertainment, Inc. (NYSE: WWE) reported a 17.5-percent sales beat and 12.5-percent bottom-line miss Thursday in its second-quarter earnings release.

The news prompted a 5-percent rise in WWE’s share price with continued gains made throughout the session.

Why It’s Important

Experts interpreted the data differently.

“If you take out the $49m of Other Media money (probably from Saudi Arabia), the numbers are very different. Attendance is falling. Social Media growth is slowing. New TV value already baked into share price. Corp costs up,” Chris Harrington, co-host of the podcast Wrestlenomics, said in a tweet.

KeyBanc Capital Markets had a more positive read. In fact, KeyBanc increased its price target on the stock from $85 to $104 and raised its 2018 top-line estimate.

“The results and outlook were heavy on growth from all fronts - OTT, core content rights fees, sponsorship, and consumer products - particularly internationally,” analysts Andy Hargreaves, Tyler Parker and Evan Wingren wrote in a note. “With all core components of its integrated, high incremental margin growth strategy seemingly inflecting over the next 2 years, we believe it can fuel the flywheel and all WWE to step on the gas.”

The analysts attributed the revenue beat to the performance of the Greatest Royal Rumble and increased monetization of media content. They anticipate accelerating growth, expanding margins and long-term opportunities.

Price Action

WWE's stock traded up 3 percent to $83.71 at time of publication.

Related Links:

WWE's Stock Is On Fire

Over The Top? Morgan Stanley Bumps WWE's Price Target To $100

Image credit: Miguel Discart, Flickr

Latest Ratings for WWE

DateFirmActionFromTo
Oct 2018Morgan StanleyMaintainsOverweightOverweight
Oct 2018CitigroupMaintainsNeutralNeutral
Aug 2018CitigroupMaintainsNeutralNeutral

View More Analyst Ratings for WWE
View the Latest Analyst Ratings

Posted-In: Andy Hargreaves Chris HarringtonAnalyst Color Earnings News Price Target Top Stories Analyst Ratings Best of Benzinga

 

Related Articles (WWE)

View Comments and Join the Discussion!

GlaxoSmithKline, 23andMe Partner On DNA Data In Drug Development

What It Takes To Be A Dividend King