NEW YORK (TheStreet) -- World Wrestling Entertainment (WWE) - Get World Wrestling Entertainment, Inc. Class A Report was gaining 8.5% to $13.12 Thursday after beating analysts' estimates for earnings in the second quarter.
For the second quarter WWE reported a loss of -18 cents a share, beating the Capital IQ Consensus Estimate of a loss of -19 cents a share by 1 cent. Revenue grew 2.6% year-over-year to $156.3 million for the quarter, missing analysts' estimates of $157.9 million.
WWE announced that it added about 33,000 subscribers to the WWE Network in the quarter, bringing the total number of subscribers to over 700,000. The company said it will introduce a new pricing plan in August, offering the network at $19.99 to those who don't want to commit to six-month subscriptions. The company will still keep the $9.99 a month option for subscribers who will commit to paying for the network for six months.
The wrestling company said it expects an operating profit of $30 million in 2015 after taking cost-cutting measures which include cutting 7% of its staff.
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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 increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity."
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.