By Kim Khan
Investing.com – World Wrestling Entertainment (NYSE:WWE) sank like a rock Friday after two top executives were forced to tag out and it issued cautious guidance.
Shares of WWE were down 22% in afternoon trading.
The sports entertainment heavyweight said postmarket Thursday that Co-Presidents George Barrios and Michelle Wilson will be leaving, with board member Frank A. Riddick III taking the role of interim chief financial officer.
“I would like to thank George and Michelle for their 10+ years of service and contributions to the organization,” Chairman and CEO Vince 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 company will commence a search for a permanent CFO and chief revenue officer.
WWE also said it sees operating income before depreciation and amortization (OIBDA) of $180 million for 2019, down from previous guidance of $190 million. It will report earnings next week.
Wall Street’s sell side dove in from the top rope to downgrade this morning.
Morgan Stanley (NYSE:MS) cut the stock to the equal weight from overweight with a price target of $54.
Evercore downgraded WWE to in-line from outperform, while Loop Capital cut shares to hold from buy.