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How is World Wrestling Stock Performing Post WrestleMania 33?
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After an action-filled Sunday with WrestleMania 33, it is time to take a review of World Wrestling Entertainment,Inc.’s shares performance. Although the mega show held at Orlando Citrus Bowl broke the stadium’s attendance as well gross records, it did not provide much impetus to the stock as expected. Shares of this media and entertainment company dipped 1.7% yesterday, only to recover 0.7% during the after-market trading session.
A mega event like WrestleMania is considered as the Super Bowl of Sports Entertainment. Though looking back, we note that the stock which had an impressive run pre-event, fails to sustain the momentum post-WrestleMania. Despite the hype, the stock has witnessed declines of 14.7%, 14.7% and 4.3% post the WrestleMania 30, 31 and 32, respectively. Nevertheless, we note that the rate of decline in the stock price post-WrestleMania has decelerated and the subscriber count has steadily increased.
In the past six months, the stock has increased 4.4% compared with the Zacks categorized Movie/TV Production/Distribution industry’s jump of 20.9%.
Was the WrestleMania 33 a Huge Success?
WWE Network, a subscription-based streaming service launched in 2014, reached a record 1.95 million total subscribers, up 7% from Apr 4 last year, the day after WrestleMania. Paid subscribers hit 1.66 million, up 14%. WWE Network subscribers viewed 22.5 million hours during WrestleMania Week compared with 21.7 million hours in 2016.
The launch of WWE Network has been a turning point for World Wrestling Entertainment as it had altered the distribution of WWE’s pay-per-views programs and lowered the monetization of assets through other platforms like pay-per-view as well as content distributed on digital platforms.
As per the company, 75,245 fans from all 50 states and 62 countries flocked Orlando Citrus Bowl, making it the seventh best attended WrestleMania event. WrestleMania 32 is at number one position with attendance record of 101,763. Let’s see whether WrestleMania 34 slated to be held on April 8, 2018 in New Orleans can better all the records so far.
What Management thinks Going Forward?
Management hinted that based on preliminary data, WWE Network has gained an average of about 1.49 million paid subscribers in first-quarter 2017, reflecting a year-over-year growth of 16%. The company now projects adjusted OIBDA to be $3–$5 million below the previously provided guidance of $23–$27 million.
The company further indicated that if the WrestleMania continues to attract and retain subscribers the average paid subscribers would reach 1.63 million (+/- 2%), reflecting an increase of about 8% from the prior-year period.
Management is optimistic about achieving another great year of revenues and adjusted OIBDA growth. The company is targeting adjusted OIBDA of $100 million, which is up nearly 25% from 2016.
Zacks Rank & Stocks to Consider
World Wrestling Entertainment carries a Zacks Rank #4 (Sell).Better-ranked stocks worth considering include Cable ONE, Inc. (CABO - Free Report) , Central European Media Enterprises Ltd. and Salem Media Group, Inc. (SALM - Free Report) . Cable ONE sports a Zacks Rank #1 (Strong Buy) while Central European Media Enterprises and Salem Media Group carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Cable ONE has an average positive earnings surprise of 4.7% in the trailing four quarters.
Shares of Central European Media Enterprises have gained about 32% in the past six months.
Salem Media Group has an average positive earnings surprise of 53.8% in the trailing four quarters.
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How is World Wrestling Stock Performing Post WrestleMania 33?
After an action-filled Sunday with WrestleMania 33, it is time to take a review of World Wrestling Entertainment, Inc.’s shares performance. Although the mega show held at Orlando Citrus Bowl broke the stadium’s attendance as well gross records, it did not provide much impetus to the stock as expected. Shares of this media and entertainment company dipped 1.7% yesterday, only to recover 0.7% during the after-market trading session.
A mega event like WrestleMania is considered as the Super Bowl of Sports Entertainment. Though looking back, we note that the stock which had an impressive run pre-event, fails to sustain the momentum post-WrestleMania. Despite the hype, the stock has witnessed declines of 14.7%, 14.7% and 4.3% post the WrestleMania 30, 31 and 32, respectively. Nevertheless, we note that the rate of decline in the stock price post-WrestleMania has decelerated and the subscriber count has steadily increased.
In the past six months, the stock has increased 4.4% compared with the Zacks categorized Movie/TV Production/Distribution industry’s jump of 20.9%.
Was the WrestleMania 33 a Huge Success?
WWE Network, a subscription-based streaming service launched in 2014, reached a record 1.95 million total subscribers, up 7% from Apr 4 last year, the day after WrestleMania. Paid subscribers hit 1.66 million, up 14%. WWE Network subscribers viewed 22.5 million hours during WrestleMania Week compared with 21.7 million hours in 2016.
The launch of WWE Network has been a turning point for World Wrestling Entertainment as it had altered the distribution of WWE’s pay-per-views programs and lowered the monetization of assets through other platforms like pay-per-view as well as content distributed on digital platforms.
As per the company, 75,245 fans from all 50 states and 62 countries flocked Orlando Citrus Bowl, making it the seventh best attended WrestleMania event. WrestleMania 32 is at number one position with attendance record of 101,763. Let’s see whether WrestleMania 34 slated to be held on April 8, 2018 in New Orleans can better all the records so far.
What Management thinks Going Forward?
Management hinted that based on preliminary data, WWE Network has gained an average of about 1.49 million paid subscribers in first-quarter 2017, reflecting a year-over-year growth of 16%. The company now projects adjusted OIBDA to be $3–$5 million below the previously provided guidance of $23–$27 million.
The company further indicated that if the WrestleMania continues to attract and retain subscribers the average paid subscribers would reach 1.63 million (+/- 2%), reflecting an increase of about 8% from the prior-year period.
Management is optimistic about achieving another great year of revenues and adjusted OIBDA growth. The company is targeting adjusted OIBDA of $100 million, which is up nearly 25% from 2016.
Zacks Rank & Stocks to Consider
World Wrestling Entertainment carries a Zacks Rank #4 (Sell).Better-ranked stocks worth considering include Cable ONE, Inc. (CABO - Free Report) , Central European Media Enterprises Ltd. and Salem Media Group, Inc. (SALM - Free Report) . Cable ONE sports a Zacks Rank #1 (Strong Buy) while Central European Media Enterprises and Salem Media Group carry a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
Cable ONE has an average positive earnings surprise of 4.7% in the trailing four quarters.
Shares of Central European Media Enterprises have gained about 32% in the past six months.
Salem Media Group has an average positive earnings surprise of 53.8% in the trailing four quarters.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>