Weber (NYSE:WEBR) stock is heading lower on Monday as the company deals with the departure of CEO Chris Scherzinger.
Scherzinger’s departure as CEO also has him leaving behind his other roles at the company, including his seat on the Board of Directors. Replacing him is 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 earnings for the third quarter of 2022. These might shine some light on why the company is searching for a new CEO.
According to these preliminary results, the company’s revenue will range from $525 million to $530 million. That’s not good news for holders of WEBR stock. Wall Street was expecting revenue of $532.74 million for the quarter.
To go along with that, Weber has pulled its outlook for the full year of 2022. The company blames this on market factors and also warns of other changes. Among them are “workforce reductions, reducing other COGS and SG&A expenses, as well as tightening its global inventory levels and working capital positions.”
Adding to that turmoil is Weber suspending its quarterly cash dividend. It’s also in talks with lending partners to maintain compliance with the requirements of its credit facilities.
All of this news brings heavy trading to WEBR stock with some 1.6 million shares on the move as of this writing. To put that in perspective, the company’s daily average trading volume is roughly half that at 730,000 shares.
WEBR stock is down 20% as of Monday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
