Wall Street Reacts to WWE’s Revised Financial Outlook
Posted by Larry Csonka on 09.16.2013
Not a good start to the day…
On Friday, issued a statement after the stock market closed saying that they are lowering their financial outlook for this year. The press release stated that they expected OIBDA results to range from $40 million to $50 million and that the revision is due mostly to "several recent developments that caused an approximate 5% reduction in second half revenue expectations" as well as the company's "high operating leverage." The company's original estimate was $56.9 million to $69.5 million.
As many expected, the stock is taking a bit of a hit. Today, with the market up around 130 points, WWE stock is down 18 cents a share. Many are worried about the stock at this point, due to Vince McMahon stating the quarter would be up, due to a huge jump in the TV rights fees that the company is paid for Raw and Smackdown.