NEW YORK – World Wrestling Entertainment Inc. (WWE) Wednesday posted a better-than-expected rise in quarterly profit, helped by revenue from pay-per-view sporting events (search).
Shares rose as much as 10 percent after the Stamford, Conn.-based promoter of wrestling events featuring sports entertainers with names like "The Undertaker," said it earned $10.9 million, or 16 cents a share, up from $8.8 million, or 13 cents a share, a year earlier.
Sales for the fiscal third quarter rose to $82.7 million from $79.1 million a year earlier.
Results beat the average forecasts compiled by Reuters Estimates, which saw profit at 11 cents a share on revenue of $81.3 million,
"Investors were impressed with the international operations in particular and the revenue opportunities that are coming from subscription video on demand," said Jeffries & Co. analyst Robert Routh, who owns shares in the stock.
The company expects its 2005 profit to be in a range of 49 cents to 51 cents a share, compared with revenue to be in a range of $345 million to $355 million.
This would imply a fourth quarter profit forecast of 16 cents to 18 cents a share, on revenue of $96.9 million to $106.9 million.
The average Reuters fourth-quarter profit estimate was 20 cents a share, on revenue of $107.7 million.
Shares rose 89 cents, or 7.7 percent, to $12.41 on the New York Stock Exchange (search).
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