WWE Earnings Give a Stone Cold Stunner to Wall Street

World Wrestling Entertainment is definitely known for some outlandish things, including Austin himself. The fact that the company is laying the smack down on Wall Street earnings estimates today is one of them.

The Stamford, CT.-based company reported third quarter earnings of 19 cents per share on $108.5 million in revenues. Wall Street had been expecting earnings of 15 cents per share on $106.7 million in revenues.

With improving earnings and better than expected revenues, shares of World Wrestling Entertainment are not the Heavyweight Champion just yet, but are at least in a number 1 contenders match, as shares are up over 2% this afternoon.

Bullish:
Traders who believe that WWE will continue to generate stronger than expected revenues might want to consider the following trades:

There is no chance of a takeover, with the McMahon family virtually holding all of the company’s shares. If the company can generate increased excitement in its brands, it could be a strong name to consider if the U.S. economy does double dip into a recession.

Bearish:
Traders who believe that the WWE will get smacked down even with Johnson appearing at multiple pay per view events may consider alternate positions:

The company failed to capitalize on the C.M. Punk story line, and may very well do the same with Johnson coming back. There is a reason why shares have continued to fall since going public in the early 2000′s, and are down 27% year-to-date.

source: forbes.com