World Wrestling Entertainment Inc. Fourth Quarter Earnings Sneak Peek

The Cheat Sheet

World Wrestling Entertainment, Inc. will unveil its latest earnings on Thursday, February 23, 2012. World Wrestling Entertainment is engaged in the development, production and marketing of television and pay-per-view event programming and live events, and the licensing and sale of consumer products featuring its World Wrestling Entertainment brands.

World Wrestling Entertainment, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 12 cents per share, a rise of 9.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 15 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 12 cents during the last month. Analysts are projecting profit to rise by 19.7% versus last year to 57 cents.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported net income of 19 cents per share against a mean estimate of profit of 15 cents per share. In the second quarter, it missed forecasts by 4 cents.

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Wall St. Revenue Expectations: Analysts predict a decline of 2.1% in revenue from the year-earlier quarter to $120 million.

Analyst Ratings: Analysts seem relatively indifferent about World Wrestling Entertainment with five of six analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 26.1% to $10.6 million (14 cents a share) from $14.3 million (19 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1% to $108.5 million from $109.6 million.

Key Stats:

The decrease in profit in the third quarter came after net income rose in the previous quarter. In the second quarter, net income rose more than twofold.

Revenue fell in the third quarter after seeing a rise the quarter before. In the second quarter, revenue rose 33.4%.

Stock Price Performance: Between November 21, 2011 and February 17, 2012, the stock price rose 49 cents (5.3%), from $9.20 to $9.69. The stock price saw one of its best stretches over the last year between March 18, 2011 and March 28, 2011, when shares rose for seven straight days, increasing 6.1% (+70 cents) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 8.5% (-84 cents) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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