NEW YORK (TheStreet) -- World Wrestling Entertainment (WWE) - Get Report shares are rallying slightly in after-hours trading on Monday after the stock closed down 14.35% to $14.15 in intraday trading, one day after the airing of the biggest show of its calendar year, Wrestlemania 31, on concerns about the growth of the company's subscription business.

Westlemania 31 was the highest grossing and most viewed event in the company's history, bringing in $12.6 million in gross revenue, though WWE has not revealed Pay Per View revenue totals.

The company also announced that subscriptions to its WWE Network grew to 1.3 million, almost double the 667,000 that the company had during the same time last year. The company said that it averaged 918,000 paid subscribers during the first quarter this year.

However, shares fell today on fears that a free company promotion is responsible for the strong subscription numbers and that those numbers will fade once the promotion ends.

"When the Pay Per View number comes out, the number will then be comparable to last year. My view is that if this number ends up over 1.5 million combined, that's a really good fact for the economics of the business," Needham analyst Laura Martin told the Associated Press earlier today.

Shares traded on heavy volume today with 6.62 million shares changing hands, almost 10 times the stock's daily trading average of 730,000 shares.

TheStreet has more coverage here. 

TheStreet Ratings team rates WORLD WRESTLING ENTMT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate WORLD WRESTLING ENTMT INC (WWE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and a generally disappointing performance in the stock itself."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

• The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues rose by 18.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
• WWE's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, WWE has a quick ratio of 1.55, which demonstrates the ability of the company to cover short-term liquidity needs.
• WORLD WRESTLING ENTMT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WORLD WRESTLING ENTMT INC swung to a loss, reporting -$0.40 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.34 versus -$0.40).
• The gross profit margin for WORLD WRESTLING ENTMT INC is currently lower than what is desirable, coming in at 32.47%. Regardless of WWE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, WWE's net profit margin of -1.15% significantly underperformed when compared to the industry average.
• Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Media industry and the overall market, WORLD WRESTLING ENTMT INC's return on equity significantly trails that of both the industry average and the S&P 500.
• You can view the full analysis from the report here: WWE Ratings Report

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