Things To Note Ahead Of World Wrestling's (WWE) Q4 Earnings
Zacks Investment Research | Feb 03, 2020 05:36AM ET
World Wrestling Entertainment, Inc. (NYSE:WWE) is slated to report fourth-quarter 2019 results on Feb 6, before the opening bell. We note that the company’s earnings per share outperformed the Zacks Consensus Estimate in three of the trailing four quarters. In the last reported quarter, the company surpassed the consensus mark by a wide margin.
The Zacks Consensus Estimate for fourth-quarter earnings has moved south by a penny to 71 cents over the past 7 days. This suggests an increase of 61.4% from the year-ago period’s reported figure. Further, the consensus mark for revenues is $334.4 million, indicating growth of 22.7% from the figure reported in the year-ago quarter.
Key Factors to Note
WWE has been gaining from its focus on expanding original content, driving subscriber count, raising content rights fees and monetization of video content across digital and DTC platforms. Further, improvement in WWE’s engagement metrics, renewal of distribution agreement and expectation of significant increase in fourth-quarter 2019 revenues, courtesy of new U.S. content distribution agreements are likely to reflect in fourth-quarter adjusted OIBDA.
World Wrestling Entertainment, Inc. Price, Consensus and EPS Surprise
On the last earnings call, management guided adjusted OIBDA between $108 million and $118 million for the quarter under review, which is considerably up from $64.4 million reported in the year-ago period.
Also, strategies such as the development of fresh content, execution of customer acquisition and retention programs, introduction of features and foray into new regions bode well for WWE.
However, the company has been struggling with its subscriber base. Management expects average paid subscribers of approximately 1.43 million for the fourth quarter, which indicates a decline of 10% from the year-ago period. Apart from this, fall in ticket sales during live events or drop in the number of live events remains concern.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for World Wrestling this time around. The combination of a positive Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.