WEBR stock plummets as Weber parts ways with CEO

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Weber (NYSE:WEBR) shares fall on Monday as the company deals with the departure of CEO Chris Scherzinger.

Scherzinger’s departure as CEO also causes him to give up his other roles within the company, including his seat on the board of directors. He is replaced by CTO Alan Matula as interim CEO while the company searches for a permanent replacement.

Weber doesn’t say exactly why Scherzinger is leaving the company. However, it includes preliminary results for the third quarter of 2022. These could shed light on why the company is looking for a new CEO.

According to these preliminary results, the company’s revenues will be between $525 million and $530 million. This is not good news for WEBR stockholders. Wall Street expected revenue of $532.74 million for the quarter.

To go along with that, Weber pulled his outlook for the full year 2022. The company attributes this to market factors and also warns of further changes. Among them are “workforce reductions, the reduction of other COGS and SG&A expenses, as well as the tightening of its global inventory levels and working capital.”

To add to this turmoil, Weber is suspending its quarterly cash dividend. It is also in discussions with lending partners to maintain compliance with the requirements of its credit facilities.

All of this news is driving heavy trading in WEBR shares with some 1.6 million shares in motion at the time of this writing. To put that into perspective, the company’s average daily trading volume is about half that of 730,000 shares.

WEBR stock is down 20% since Monday morning.

Investors looking for more stock market news are in the right place!

We have all the hottest stock market news traders need to know for Monday! Some examples include what moves shares of Siga Technologies (NASDAQ:SIGA), Energy infrastructure and alternatives (NASDAQ:OUCH), and GeoVax Laboratories (NASDAQ:GOUVX) Inventory. You can find all these news on the following links!

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As of the date of publication, William White had (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

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