WWE Shares Plunge 23% As Company Ousts Co-Presidents, Downgrades Q4 Expectations

World Wrestling Entertainment's (NYSE: WWE) stock traded remarkably lower in Thursday's after-hours session, as the company announced the departure of its co-presidents.

Benzinga · 01/31/2020 04:02

World Wrestling Entertainment's (NYSE: WWE) stock traded remarkably lower in Thursday's after-hours session, as the company announced the departure of its co-presidents.

What Happened

WWE, a media and entertainment company, announced  that co-presidents George Barrios and Michelle Wilson have been removed from its board of directors and are leaving the company immediately.

Both Barrios and Wilson were promoted to the roles in 2018. WWE chairman & chief executive officer Vincent McMahon cited a difference of vision as the reason behind the departure.

"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 all that was accomplished during their tenure, but the Board and I decided a change was necessary as we have different views on how best to achieve our strategic priorities moving forward.
The entertainment media company has named board member Frank A. Riddick III as the interim Chief Financial Office until it manages to find a permanent replacement.

2019 Expectations Below Analyst Average

WWE also downgraded its expectations for adjusted operating income before depreciation and amortization to $180 million, from an earlier forecast of $190 million.
The Connecticut-based company's non-GAAP operating income expectation is also 3.5% lower than the average of $186.6 million that analysts polled by Bloomberg estimated.
WWE also announced a dividend of 12 cents per share for all Class A and B shares for the quarter.

Price Action

WWE's shares dropped 22.97% lower at $47.99 in the after-hours session at press time on Thursday. The stock closed the regular session 2.21% higher at $62.30.