World Wrestling Entertainment Inc. (NYSE:WWE) was up 8.08% as the noon hour came to a close on June 27. Shares have soared over 115% in 2018 so far. WWE develops and produces television programming, pay-per-view programming, and live wrestling events. The stock has gained new momentum after a significant television deal for its major programs.
This week the WWE signed five-year agreements with the USA Network and Fox Sports in a move the company predicts will provide a big boost to revenue. It ultimately projected that revenue will grow from $235 million this year to $462 million in 2021. The stock is up over 220% year over year.
The WWE released its first-quarter results on May 3. Revenues were mostly flat year-over-year at $187.7 million but rose 5% excluding a key item. Operating income increased to $21.8 million compared to $4 million in the prior year. Wrestlemania, the WWE’s biggest annual showcase, posted the largest attendance in its history and was the most-watched in history – reaching 2.12 million households worldwide.
Is WWE stock a good buy after its most recent television deal? Its projected revenue is definitely promising, but investors should be cautious as market volatility has returned with a vengeance to start the summer. Investors should wait for a pullback rather than buy at its current peak, although those looking long-term may want to stack today.
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