WWE’s stock slips as profit tops expectations, but revenue comes up a bit short

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Shares of World Wrestling Entertainment Inc. fell 0.9% in after-hours trading Thursday, after the media and entertainment company reported a third-quarter profit that rose above expectations, but revenue came up a bit short. Net income rose to $48.2 million or 57 cents a share, from $5.8 million, or 6 cents a share, in the year-ago period. Excluding non-recurring items, such as gains on its investment in DraftKings Inc. and severance expense, adjusted EPS came to 56 cents, above the FactSet consensus of 38 cents. Revenue rose 18.9% to $221.6 million, but was just below the FactSet consensus of $221.7 million, as media and live events revenue missed expectations to offset a beat by consumer products. The revenue increase was driven by growth of core content right fees, which were partially offset by the loss of ticket and merchandise sales resulting from the continued cancellation and relocation of live events as a result of the COVID-19 pandemic. The company did not provide financial guidance. The stock, which closed Thursday’s regular session up 1.9% at $37.33, has lost 16.2% over the past three months while the S&P 500 has tacked on 1.6%.
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