WWF Surge Throws Observers for a Loop

World Wrestling Federation Entertainment Inc. (WWFE), whose shares had apparently been down for the count since the company went public in October, got off the mat Tuesday with quarterly earnings that body-slammed Wall Street estimates.

Net income at the company that made stars of such wrestlers as “Stone Cold” Steve Austin increased 54% in the quarter ended Jan. 28 to $15.7 million, or 23 cents a share. Analysts polled by First Call/Thomson Financial had estimated third-quarter earnings of 18 cents per share.

Year-earlier pro forma results, which assume the company was public before it was, were estimated at 18 cents a share.

Revenue in the latest quarter increased more than 50% to $98.4 million from $65.2 million.

The stock jumped $1.38 to $13 on Nasdaq, still well below its initial public offering price of $17.

Analyst Jeff Hoskins of Seidler Cos. said he was “particularly impressed by the numbers. There is strength across the board and a good mix of revenue growth into higher-margin areas.”

Linda McMahon, president and chief executive of Stamford, Conn.-based WWF, said the company is moving forward aggressively with its strategic growth plan, including its own record company, TV deals in Britain and negotiations with U.S. networks to show games of the WWF’s recently announced football league, the XFL.