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WWE's Stock Slammed On Big Q1 Earnings Miss

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WWE's Stock Slammed On Big Q1 Earnings Miss

World Wrestling Entertainment, Inc. (NYSE: WWE) stock is down more than 9 percent Thursday after the company’s first-quarter earnings report fell short of market expectations.

What Happened

WWE reported a first-quarter EPS loss of 11 cents on revenue of $182.4 million. Both numbers were well short of consensus analyst estimates of a 2-cent EPS loss on $198.99 million in revenue. Revenue was down 2.6 percent from a year ago.

In the first quarter, ratings for WWE’s weekly “Raw” and “SmackDown” TV shows were down 14 percent and 13 percent, respectively. Attendance for live shows also dropped 11 percent. However, average WWE Network paid subscribers were up 2 percent to 1.58 million and hit 2 million on the day after WrestleMania.

Network subscribers viewed 23.2 million hours of content over WrestleMania weekend. In addition, WWE reported 17.9 million hours of digital and social media platform engagement during WrestleMania week, up 29 percent from a year ago.

Why It's Important

CEO Vince McMahon said the first quarter was negatively impacted by talent injuries.

“While engagement metrics over the past two quarters were impacted by Superstar absences, we believe they will improve as our talent return and we launch our new season following a successful WrestleMania,” McMahon said in a statement.

Earlier this week, JPMorgan analyst David Karnovsky called WWE his “top pick in the live entertainment subsector” and raised his price target from $95 to $105.

Investors were quick to take profits in WWE shares following the disappointing report. WWE shares were up 150 percent in the past year prior to the report.

At time of publication, WWE's stock traded down 8.8 percent at $89.72 per share.

Related Links:

JPMorgan Raises WWE's Price Target, Bullish On 'Smackdown' Future

John Oliver Roasts WWE Again, This Time About Health Benefits And Independent Contracts

Photo courtesy of WWE.

Latest Ratings for WWE

DateFirmActionFromTo
Aug 2019Initiates Coverage OnBuy
Jul 2019MaintainsOverweight
Jul 2019UpgradesHoldBuy

View More Analyst Ratings for WWE
View the Latest Analyst Ratings

Posted-In: David KarnovskyAnalyst Color Earnings News Short Ideas Analyst Ratings Movers Trading Ideas Best of Benzinga

 

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