WWE reported a loss of $8 million, or 11 cents a share, compared to net income of $3 million, or 4 cents a share, in the same period one year earlier. This was 5 cents narrower than the Capital IQ consensus estimate of a loss of 16 cents a share.
WWE said in a statement the loss was due primarily to expenditures for the launch of the WWE Network. The company had expected a net loss in the range of $12 million to $15 million.
Revenue climbed 1.3% year over year to $125.6 million, which beat the consensus estimate of $124.32 million.
The stock rose 4.26%, or 83 cents, to $20.33 at the close of trading on Thursday. It had a range of $19.65 to $20.82 for the day and a 52-week range of $8.94 to $31.98.
Separately, 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 solid stock price performance. 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."