Disney shares lose ground after Q1 earnings, succession announcement

The company’s overall revenue was roughly $26 billion, up 5% yearly, and beating Wall Street’s expectations of $25.7 billion.

The company’s CEO announcement marks the second time it’s appointed a successor for Iger. His first stint as CEO ended in 2020 when Disney picked Bob Chapek to take the top position. But Chapek was fired in late 2022, prompting Iger to return.

Jefferies analysts said in a note Monday, before Disney tapped D’Amaro as its next CEO, that the “leadership transition remains an overhang on shares.”

In a Monday note, BofA analysts also said succession had “been an overhang on the shares recently.”

Iger said Monday his successor will be “handed, I think, a good hand in terms of the strength of the company, a number of opportunities to grow and also the expectation that in a world that changes, you also have to continue to change and evolve as well.”

The BofA analysts said Monday that, given the value of the experiences division to the company’s earnings, the appointment of D’Amaro would be “well received by the investment community.”