WWE (NYSE:WWE) stock was down 0.19% in mid-afternoon trading on July 15. The stock has plunged 23% over the past three months. Shares took a hit after a disappointing first quarter earnings release back in late April.
The WWE delivered record revenue in 2018. In the first quarter of 2019 the company failed to measure up to the prior year and reported revenues of $182.4 million.
WWE posted an operating loss of $6.8 million compared to operating income of $21.8 million in Q1 2018. The company shed 120,000 subscribers year-over-year, which was probably the most pressing concern.
Chairman and CEO Vince McMahon blamed the lagging metrics on "Superstar absences". However, television viewership declined broadly across the WWE’s shows. In any case, the company hopes to receive a boost with the return of Roman Reigns, John Cena, Triple H, and Brock Lesnar to more regular action.
In early June, Morgan Stanley released a bullish report and predicted that the company would continue strong earnings growth into 2025, based largely off favourable television rights trends.
So, is WWE stock a buy today? I am not convinced after a less-than-stellar Q1 2019 earnings report. The stock boasts a high P/E, and shares had an RSI of 44 at the time of this writing. This puts the stock in neutral territory. Growth investors should still keep their eyes on the stock, but I want a more favourable entry point before pulling the trigger.
Related Stories
