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Can World Wrestling (WWE) Pull a Surprise with Q2 Earnings?
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World Wrestling Entertainment, Inc. is scheduled to report second-quarter 2016 financial numbers, before the opening bell on Jul 28. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 63.6%. Here’s a discussion on the determinants of second-quarter results.
Zacks Model Shows Unlikely Beat
Our proven model does not conclusively show that WWE is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
WWE has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stands at 8 cents. The company holds a Zacks Rank #3 but an ESP of 0.00% makes a surprise prediction difficult.
Factors Influencing This Quarter
World Wrestling Entertainment is executing a five-part strategy to strengthen and expand the WWE Network, which includes creating new content, implementing programs with higher customer attraction and retention power, introducing new features, expanding distribution platforms and entering into new regions. All these endeavors helped the company to continue with its positive earnings surprise streak for the third straight quarter, when it reported first-quarter 2016 results.
For second-quarter 2016, WWE anticipates average paid subscribers of 1.5 million. Adjusted OBIDA is projected in the range of $5–$9 million. Management hinted that if the average paid subscribers to WWE Network grow at a rate of 20-25% in 2016, adjusted OIBDA may come in the range of approximately $70-$85 million. However, if the recent overarching subscriber trends continue in the remaining part of 2016, increase in average paid subscribers and adjusted OIBDA would be at high end of the ranges.
On the flip side, WWE operates in the highly competitive market of entertainment video. Further, decline in pay-per-view revenues over the past four years is another major concern for the company.
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2.
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Can World Wrestling (WWE) Pull a Surprise with Q2 Earnings?
World Wrestling Entertainment, Inc. is scheduled to report second-quarter 2016 financial numbers, before the opening bell on Jul 28. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 63.6%. Here’s a discussion on the determinants of second-quarter results.
Zacks Model Shows Unlikely Beat
Our proven model does not conclusively show that WWE is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen.
WWE has an Earnings ESP of 0.00% as both the Most Accurate estimate and the Zacks Consensus Estimate stands at 8 cents. The company holds a Zacks Rank #3 but an ESP of 0.00% makes a surprise prediction difficult.
Factors Influencing This Quarter
World Wrestling Entertainment is executing a five-part strategy to strengthen and expand the WWE Network, which includes creating new content, implementing programs with higher customer attraction and retention power, introducing new features, expanding distribution platforms and entering into new regions. All these endeavors helped the company to continue with its positive earnings surprise streak for the third straight quarter, when it reported first-quarter 2016 results.
For second-quarter 2016, WWE anticipates average paid subscribers of 1.5 million. Adjusted OBIDA is projected in the range of $5–$9 million. Management hinted that if the average paid subscribers to WWE Network grow at a rate of 20-25% in 2016, adjusted OIBDA may come in the range of approximately $70-$85 million. However, if the recent overarching subscriber trends continue in the remaining part of 2016, increase in average paid subscribers and adjusted OIBDA would be at high end of the ranges.
On the flip side, WWE operates in the highly competitive market of entertainment video. Further, decline in pay-per-view revenues over the past four years is another major concern for the company.
WORLD WRESTLING Price and EPS Surprise
WORLD WRESTLING Price and EPS Surprise | WORLD WRESTLING Quote
Stocks Poised to Beat Earnings
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Big Lots Inc. (BIG - Free Report) has an Earnings ESP of +4.35% and a Zacks Rank #2.
Expedia Inc. (EXPE - Free Report) has an Earnings ESP of +6.82% and a Zacks Rank #3.
Time Warner Inc. has an Earnings ESP of +0.87% and a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>