Momentum & Growth

Insider Financial Trading View Update For 01/07/2020

Following up on our Trading View update for 01/06/2020, we have 3 new ideas today.

First up today is World Wrestling Entertainment Inc (NYSE:WWE).

$WWE has been crushed over the past year with the stock down 55% from its highs. We believe at current levels, $WWE presents a turnaround opportunity and one which we see as a bet on CEO Vince McMahon. The man is a known fighter and we believe he can right the ship.

While the stock sold off on a revenue miss and a management shakeup, all news wasn’t all bad.

Fourth Quarter 2019 Highlights

  • Revenues increased 18% to $322.8 million, which was the highest quarterly revenue in WWE history
  • Operating income increased 87% to $99.8 million
  • Adjusted OIBDA1 increased 67% to a quarterly record of $107.6 million

Full Year 2019 Highlights

  • Revenues reached $960.4 million, the highest in the Company’s history
  • Operating income was $116.5 million
  • Adjusted OIBDA of $180.0 million represented record performance for the third consecutive year
  • SmackDown successfully transitioned to FOX Broadcast, where viewership increased by 20% over the prior year fourth quarter,2 and NXT extended its reach, airing live on USA Network for the first time
  • WWE completed content distribution agreements with BT Sport and ViacomCBS’ Channel 5 in the U.K., Fox Sports in Latin America, PP Sports in China and SuperSport in Africa, providing strong platforms for reaching WWE audiences in these regions
  • Digital engagement continued to grow with video views up 10% to 34.5 billion and hours consumed up 7% to nearly 1.3 billion across digital and social media platforms
  • Return of capital to shareholders totaled a record $120.8 million in 2019

Second is iRobot Corp (NASDAQ:IRBT).

Yesterday we got the catalyst we were looking for from $IRBT – a solid earnings report. With 48% of the float short, we expect $IRBT to squeeze the shorts. Here are the highlights”

iRobot (NASDAQ:IRBT): Q4 Non-GAAP EPS of $0.69 in-line; GAAP EPS of $0.70 beats by $0.29.

Revenue of $426.78M (+10.9% Y/Y) beats by $10.83M.

Shares of iRobot (NASDAQ:IRBT) popped after the company hires a new CFO and reports Q4 EPS even above the highest estimate turned in by analysts.

Revenue was up 11% during the quarter and operating income came in at $16.6M vs. $29.8M a year ago. Tariff costs factored into the OI decline.

The company promoted VP of finance Julie Zeiler to take over the CFO position from Alison Dean.

Third is Gluu Mobile Inc (NASDAQ:GLUU), which is up 40% in just the 2 months since we profiled it on December 5th.

Subscribers that followed our recommendation to buy $GLUU at $5.75 a share are now sitting on 40% gains in just 2 months. With yesterday’s major breakout on a strong earnings report, further gains are likely. Here are the highlights:

Glu Mobile (NASDAQ:GLUU): Q4 GAAP EPS of $0.07 beats by $0.06.

Revenue of $112.9M (+18.1% Y/Y) beats by $9.26M.

Glu Mobile (NASDAQ:GLUU) topped bookings expectations in its Q4 earnings , and reached record GAAP profitability.

Results were driven by another record bookings quarter for Design Home and Covet Fashion, along with the best Q4 for Tap Sports Baseball, CEO Nick Earl says.

Bookings rose by double digits to $108.4M.

For Q1, excluding new titles, it’s guiding to bookings of $93M-95M (may not compare to consensus for $98.5M); for the full year, it sees bookings of $432M-433M (may not compare to consensus for $459. 3M ), and liquidity of at least $150M.

As always, trade with caution and use protective stops.

Good luck to all!

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Disclosure: At the time of this writing, we have no positions in any of the stocks mentioned. We are not financial advisors. Please read our full disclaimer for more information.

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Insider Financial Trading View Update For 01/07/2020
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