Benzinga | Feb 3, 2021 10:18AM EST

Earnings Outlook for World Wrestling Enter

On Thursday, February 04, World Wrestling Enter (NYSE:WWE) will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $0.31 and sales around $245.69 million. In the same quarter last year, World Wrestling Enter announced EPS of $0.78 on revenue of $322.80 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 60.26% decrease in the company's earnings. Sales would be down 23.89% from the year-ago period. World Wrestling Enter's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 0.37 0.14 0.25 0.75EPS Actual 0.57 0.52 0.31 0.78Revenue Estimate 222.26 M 228.40 M 266.52 M 335.83 MRevenue Actual 221.60 M 223.40 M 291.00 M 322.80 M

Stock Performance

Shares of World Wrestling Enter were trading at $57.13 as of February 02. Over the last 52-week period, shares are up 28.76%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. World Wrestling Enter is scheduled to hold the call at 17:00:00 ET and can be accessed here.