Why Weber Stock Was Burnt Today

Shares of Weber (NYSE: WEBR), a maker of popular grills, fell hard on Monday and for good reason. The company's CEO is abruptly gone, preliminary financial results for the fiscal third quarter of 2022 weren't great, full-year guidance has been withdrawn, and its dividend is now suspended. That's a lot for investors to take in all at once. And for these reasons, Weber stock was down 15% as of 12:30 p.m. ET.

There have been a bevy of CEO shakeups in 2022 but few have been as head-turning as Weber's. Chris Scherzinger, the CEO of four years, has been replaced by Chief Technology Officer Alan Matula -- there was no transition period. And Scherzinger is off the board of directors as well. Investors don't like blunt changes like this because they suggest there's a lot going on under the surface.

Besides red flags with management, Weber's business isn't doing well either. Preliminary fiscal third-quarter results, for the three months ended June 30, show net sales of $525 million to $530 million -- down 21% to 22% year over year. It's also down 13% to 14% just from the second quarter. For perspective, net sales were up about 2% from the second quarter to the third quarter of 2021.

Source Fool.com