WWE shares fall 23% as the company displaces the co-presidents and lowers expectations for the fourth quarter

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "World Wrestling Entertainment (NYSE: WWE) The stock was trading significantly lower on Thursday after work when the company announced the resignation of its co-presidents. “data-reactid =” 18 “>World Wrestling Entertainment (NYSE: WWE) shares were trading significantly lower on Thursday after close of business when the company announced the resignation of its co-presidents.

What happened

WWE, a media and entertainment company, announced that two presidents, George Barrios and Michelle Wilson, have been removed from the board and will leave the company immediately.

Both Barrios and Wilson were promoted to roles in 2018. Vincent McMahon, Chairman and Chief Executive Officer of WWE, cited a difference in perspective as the reason for the departure.

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" I would like to thank George and Michelle for this text their more than 10 years of service and contributions to the organization, "McMahon said in one Explanation,
“I am grateful for everything that has been achieved during her tenure, but the board and I have decided that a change is necessary because we have different views on how best to achieve our strategic priorities.
The entertainment media company has appointed board member Frank A. Riddick III as provisional CFO until it finds a permanent replacement. “Data-reactid =” 22 “>” I would like to thank George and Michelle for their 10+ years of service and contributions to the organization, “McMahon said in a statement.
“I am grateful for everything that has been achieved during her tenure, but the board and I have decided that a change is necessary because we have different views on how best to achieve our strategic priorities.
The entertainment media company has appointed board member Frank A. Riddick III as provisional CFO until it finds a permanent replacement.

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Expectations for 2019 below the analyst average

<p class = "canvas-atom-canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "WWE previously also had expectations for the adjusted Operating income downgrades depreciation to $ 180 million, according to an earlier forecast of $ 190 million.
The Connecticut-based non-GAAP expectation is also 3.5% lower than Bloomberg’s estimated $ 186.6 million average.
WWE also announced a dividend of 12 cents per share for all Class A and B shares for the quarter. “Data-reactid =” 24 “> WWE also downgraded its adjusted operating income before depreciation from $ 180 million forecast to $ 190 million.
The Connecticut-based non-GAAP expectation is also 3.5% lower than Bloomberg’s estimated $ 186.6 million average.
WWE also announced a dividend of 12 cents per share for all Class A and B shares for the quarter.

Price action

WWE stock fell 22.97% to $ 47.99 after Thursday’s press conference. The stock closed the regular session 2.21% higher at $ 62.30.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "More from Benzinga“data-reactid =” 28 “>More from Benzinga

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "© 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.“data-reactid =” 33 “>© 2020 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.

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