Benzinga - Walt Disney (NYSE:DIS) Co's (NYSE: DIS) replaced CEO Bob Chapek with Robert Iger, the company's former chairman and CEO, who left the company at the end of last year.
This month, the company reported weaker-than-expected fourth-quarter financial results, killing the momentum built up over a strong year that saw record revenue and profits in multiple divisions, especially the one that includes theme parks.
The company also cautioned that its profitability target would only be met if there wasn't a significant economic downturn, the first time it has added such a caveat, the Wall Street Journal reports.
Iger will be responsible for reversing the steep decline in Disney's shares, which headed toward their worst annual loss since at least the 1970s, Bloomberg reports.
Disney has also faced pressure from multiple activist hedge-fund investors this year. Trian Fund Management LP earlier this month bought more than $800 million worth of Disney stock in the days following the company's lackluster Q4 results.
The Nelson Peltz activist fund is seeking a seat on Disney's board as it pushes to make operational improvements and cut costs. Trian fund opposed Robert Iger's rehiring.
"The Street will see him as a steady leader in uncertain times," Wells Fargo (NYSE:WFC) analyst Steven Cahall said of Iger in a research note Sunday. "Chapek was seen as an ace on park ops, whereas Iger is the content guru, and we think content is believed to be the lifeblood of the company."
Price Action: DIS shares traded higher by 7.88% at $99.03 in the premarket on the last check Monday.
Latest Ratings for DIS
| Mar 2022 | MoffettNathanson | Maintains | Neutral | |
| Feb 2022 | Citigroup (NYSE:C) | Maintains | Buy | |
| Feb 2022 | JP Morgan | Maintains | Overweight |
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