World Wrestling Entertainment Inc. (WWE) is slated to report its fourth-quarter 2014 results on Feb 12, before the opening bell. In the last quarter, the company had delivered a positive earnings surprise of 94.1%. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
World Wrestling Entertainment quarterly results may be favorably impacted by the cost-cutting measures and the performance of its WWE Network, which continues to remain a vital source of revenue generation. However, increasing concern is the sustainability of the subscriber growth at the WWE Network, as consumer preference patterns usually remain highly volatile.
Earnings Whispers
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 Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: 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 the Most Accurate estimate and the Zacks Consensus Estimate both stand at 1 cent.
Zacks Rank: World Wrestling Entertainment carries a Zacks Rank #3 (Hold). Though a Zacks Rank #3 increases the predictive power of ESP, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Kroger Co. (KR) has an Earnings ESP of +4.49% and a Zacks Rank #2 (Buy).
Dollar Tree, Inc. (DLTR) has an Earnings ESP of +0.88% and a Zacks Rank #3 (Hold).
Macy's, Inc. (M) has an Earnings ESP of +0.41% and a Zacks Rank #3.
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