Today is Thursday, July 13, 2023.
The Early Bird Index today is 58.16.
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Walt Disney CEO Until 2026
Bob Iger signed a 2-year contract extension with the Walt Disney Company (NYSE: DIS) on Wednesday, sending shares up 1% in after-hours trading.
Details: The extension means that Iger will now serve as CEO until the end of 2026, two years longer than the original plan to serve until the end of 2024. The extension gives the company more time to execute a transition plan for a new CEO in the future.
Background: Iger, who originally served as CEO from 2005 to 2020, returned in November 2022 to help Disney adapt to a post-pandemic market. The company has made several changes since Iger’s return, including recent layoffs.
Quote: “On my first day back, we began making important and sometimes difficult decisions to address some existing structural and efficiency issues, and despite the challenges, I believe Disney’s long-term future is incredibly bright.” - Disney CEO Bob Iger.
But: It’s been a painful few months for Disney. In addition to the layoffs, Disney has considered selling assets, had a dispute with the governor of Florida, and had to contend with a mixture of successful and not-so-successful film releases.
Stock Price: Disney’s stock is up 1% this year, but down nearly 4% in the last 30 days.
Final Thoughts: In the short term, investors should be happy that Iger is staying around longer than expected. But in the long-term, the lack of a clear succession plan for the CEO is troubling.
Notable Earnings Today: PepsiCo (Nasdaq: PEP), Delta Air Lines (NYSE: DAL), Aehr Test Systems (Nasdaq: AEHR), Washington Federal (Nasdaq: WAFD), Progressive (NYSE: PGR), Cintas (Nasdaq: CTAS), Conagra (NYSE: CAG), Fastenal (Nasdaq: FAST), Wipro (NYSE: WIT).
Notable IPOs Today: Texas Capital Funds Trust (NYSE Arca: TXS).
Notable Equity Crowdfunding Campaigns Ending Today: Sapphire Sky Boutique (SMBX), Good Greens Flower (Mainvest), Black Heath Meadery (Round Here), Let's Talk Money Channel Drop (GigaStar Market), Zizikis Street Food (Honeycomb).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), PPI / Core PPI (8:30 a.m. ET), Federal Budget Balance (2:00 p.m. ET).
Lionsgate Plans to Split Company
Photo by Cytonn Photography / Unsplash
Lionsgate (NYSE: LGF.A) jumped 2.36% in after-hours trading on Wednesday after filing paperwork to separate into two publicly-traded companies.
Details: One company will focus on its productions and the second company will focus on networks such as Starz.
Quote: “We remain excited by the prospect of separating Lionsgate and Starz into standalone companies with strong financial foundations that will allow each company to pursue its own distinct strategy while offering investors the opportunity to own both a pure-play publicly-traded content studio and a premium subscription platform.” - Lionsgate CEO Jon Feltheimer.
Stock Price: Lionsgate is up 61% this year, but down by 10% in the last 30 days.
Final Thoughts: As other media companies struggle this year, Lionsgate has performed well. In its most recent financial results, the company posted better-than-expected earnings.
MillerKnoll Reports Declining Sales
Furniture and home furnishings company MillerKnoll (Nasdaq: MLKN) fell by 6.99% in after-hours trading on Wednesday after posting financial results.
Details: Although the company’s earnings and revenue in the past quarter were better than expected, overall sales dropped.
Final Thoughts: It has been a struggle all year for MillerKnoll, which is down 22% in 2023.
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Trends to Watch
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Delivery: Domino’s shares soar after striking a surprise deal (CNN)
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AI Craze: Elon Musk launches AI firm xAI as he looks to take on OpenAI (Reuters)
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