World Wrestling (WWE) Stock Crashes Despite Q4 Earnings Beat
Zacks Investment Research | Feb 06, 2020 08:31PM ET
Shares of World Wrestling Entertainment, Inc. (NYSE:WWE) slumped more than 9% during the trading session on Feb 6, in spite of the company reporting an earnings beat in fourth-quarter 2019. We note that the company posted lower-than-expected revenues. This was the fourth straight quarter of top-line miss. Nonetheless, both the top and bottom lines registered year over year growth.
The company also informed that it is undertaking a number of endeavors to increase content monetization in 2020 and beyond. These comprise distribution of content in the Middle East and India and the evaluation of strategic alternatives for its direct-to-consumer service, WWE Network. However, it went on to add that at this juncture, the outcome of these initiatives is “subject to considerable uncertainty”. This was enough to hurt investor sentiment.
We note that shares of this Zacks Rank #3 (Hold) company have slumped 18.4% against the Original post
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