WWE Shares Visit 'Suplex City' After Record Quarter
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
World Wrestling Entertainment, Inc. (NYSE: WWE) shares were trading lower by $0.24 (1.7 percent) at $14.12 in Thursday's session. Despite posting better-than-expected EPS ($0.13 vs. $0.02 estimates) and revenue ($176.2 million vs. $171.45 million), it is in the red in today's session.
The $176.2 million in revenue is a record for the company; WWE went public in October 1999.
Initially, the Street reacted favorably to the report, sending the stock from its closing price of $14.36 all the way to $15.44 off the opening bell. That marked the highest level for the issue since it peaked $17.44 on March 30; The high was followed by positive results from its Wrestlemania 31 event. The issue ended up settling far off that level at $14.09 when less-than-anticipated WWE Network subscriber numbers were released later in the day.
Today's decline has taken the issue under $14, but found support ahead of Wednesday's low ($13.72), only reaching $13.84 before rebounding back over $14.
CEO and Chairman Vince McMahon stated, "During the quarter, we generated record quarterly revenue and strong earnings growth, reflecting our strategy to realize greater value from our content across multiple platforms. We believe that we are on a path to significant growth as we continue to expand WWE Network and innovate faster than ever."
Editor's note: At time of publication, shares were down $0.40 (2.8 percent) at $13.96.
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