World Wrestling Entertainment Inc.
), media and entertainment company, is slated to report its
second-quarter 2014 earnings on Jul 31, before the opening bell. In
the previous quarter, World Wrestling Entertainment recorded a
positive earnings surprise of 38.9%. Let's see how things are
shaping up for this announcement.
Factors Influencing This Quarter
World Wrestling Entertainment's previous quarter results were
primarily driven by the launch of the WWE Network during the
quarter, becoming the first 24/7 streaming network. The company
sees it as a vital source of earnings growth in the long run.
However, per the company's forecast last quarter, its net income
is expected to decline this quarter, on a sequential basis.
Earnings are expected to fall owing to anticipated profits from
WresteMania 30 being more than offset by a seasonal slump in
licensing operations, high network expenses and soft home
Our proven model does not conclusively show that World Wrestling
Entertainment is likely to beat earnings this quarter. This is
because a stock needs to have both a positive
(Expected Surprise Prediction) and a Zacks Rank #1, 2 or 3 for this
to happen. This is not the case here as you will see below:
: The Earnings ESP, which represents the difference between the
Most Accurate estimate and the Zacks Consensus Estimate, is
currently pegged at 0.00%. This is because both the Most Accurate
estimate and the Zacks Consensus Estimate stand at a loss of 17
: World Wrestling Entertainment carries a Zacks Rank #3 (Hold).
Though Zacks Rank #1, 2 or 3 increases the predictive power of ESP,
the company's ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model
shows they have the right combination of elements to post an
Citi Trends, Inc. (
), Earnings ESP of +6.90% and a Zacks Rank #1 (Strong Buy).
Abercrombie & Fitch Co. (
), Earnings ESP of +18.18% and a Zacks Rank #2 (Buy).
Conns Inc. (
), Earnings ESP of +2.70% and a Zacks Rank #2.
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WORLD WRESTLING (WWE): Free Stock Analysis
ABERCROMBIE (ANF): Free Stock Analysis Report
CITI TRENDS INC (CTRN): Free Stock Analysis
CONNS INC (CONN): Free Stock Analysis Report
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