TKO Group (TKO) is a sports and entertainment company that is involved in broadcasting and organizing a wide lineup of events. The company was formed with the merger of World Wrestling Entertainment (WWE) and Zuffa, the managing company of the Ultimate Fighting Championship (UFC). The company broadcasts in more than 170 countries with a lineup of over 350 live sports matches and tournaments.
Currently the company boasts an impressive lineup featuring big names such as WWE, UFC, and the Professional Bull Riders (PBR).
About TKO Stock
TKO Group came into being in September 2023 as a result of the merger. The company is currently valued at a market capitalization of $24.9 billion.
The stock has been on an impressive run, up 85% over the past 52 weeks and 5.8% over the past year.
TKO’s Entry into the S&P 500 Index
The S&P 500 Index ($SPX) is set for a four-name reshuffle before the market opens on March 24. The move will see DoorDash (DASH), TKO Group, Williams-Sonoma (WSM), and natural gas (NGJ25) producer Expand Energy (EXE) enter the illustrious S&P 500 Index.
BorgWarner (BWA), Teleflex (TFX), Celanese (CE), and FMC (FMC) will be exiting the index at the same time.
The index provider said that the four additions are better representations of the large-cap stock universe. T
TKO Reports Fourth-Quarter Results
TKO Group reported its fourth-quarter results on Feb. 26, posting a profit of $31 million. This translates to adjusted earnings per share of $0.35, beating Wall Street’s estimated $0.23 per share.
The company drove total revenue of $642.2 million, against analysts’ $612.6 million estimate. Net revenue from WWE totaled $298.30 million, slightly better than analysts’ $293.38 million estimate. Net revenue from UFC came to $343.90 million, again beating analysts’ $321.77 million.
On a full-year basis, it reported a profit of $9.4 million or $0.02 per share while revenue came to $2.8 billion and adjusted EBITDA came to $1.25 billion.
For 2025, management anticipates revenue between $2.93 billion and $3 billion, with adjusted EBITDA in the range of $1.35 billion to $1.39 billion.
Analyst Ratings on TKO Stock
Analysts are bullish on the company, as seen in a consensus “Strong Buy” rating with a mean price target of $171.38, reflecting upside potential of 14% from current trading levels.
The stock has been reviewed by 17 analysts, while receiving a “Strong Buy” rating from 14 analysts and a “Hold” rating from three analysts.
On the date of publication, Ruchi Gupta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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