World Wrestling Entertainment announced better-than-expected earnings and revenue in the second quarter Tuesday, as the professional wrestling media company saw upticks in viewership across its premium live content. WWE stock rose in Tuesday's trading.
Last month, WWE shares dropped off after Vince McMahon stepped down from his role as CEO while the company investigates allegations of misconduct. McMahon reportedly paid $3 million to a departing employee with whom he allegedly had an affair, according to the Wall Street Journal.
On Monday, the company said the investigation was "substantially complete," according to federal filings.
WWE Earnings
Estimates: Wall Street predicted WWE would earn 57 cents per share on $324.4 million in revenue, according to FactSet.
Results: WWE earned 58 cents per share, a 70% increase year-over-year. Total sales spiked 23% to $328.2 million in the second quarter.
Outlook: The company raised its full-year guidance. In February WWE had projected adjusted OIBDA of $360 million to $375 million for the full fiscal year. On Tuesday, WWE said it now expects adjusted OIBDA around $370 million to $385 million for the full-year.
Meanwhile, WWE reported that each of its premium live events (WrestleMania, WrestleMania Backlash and Hell in a Cell) were the most viewed event in its history with year-over-year increases of 60%, 49% and 45%, respectively.
"We continued to effectively execute our strategy, including staging a record-setting WrestleMania in early April," co-CEOs Stephanie McMahon and Nick Khan said in a joint statement.
WWE Stock Action
WWE shares increased 1.5% to 73.28 in Tuesday's market trading. The stock has recovered from its July dip and is trading at its highest levels since 2019. Shares are extended after breaking out July 25 from a cup-with-handle pattern with an official 68.83 buy point, according to MarketSmith Analysis.
In addition, the company ranks first in the Media-Diversified industry group. WWE stock has a 94 Composite Rating out of 99. It has a 95 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The EPS rating is 98.
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