Mattel Plunges Most Since 2009 After Revenue Misses Estimates
Mattel Inc. (MAT), the world’s largest toymaker, fell the most in almost five years after it posted fourth-quarter revenue that trailed analysts’ estimates as sales of its Barbie brand fell.
Mattel shares sank 10 percent to $38.51 at 9:38 a.m., after falling as low as $38.16 for the biggest intraday decline since February 2009. Through yesterday, the stock had gained 16 percent in the past 12 months, compared with a 19 percent increase for the Standard & Poor’s 500 Index.
Global revenue from Barbie fell 13 percent in the quarter and Hot Wheels declined 8 percent, the company said today. The quarter including the holiday-shopping season proved lackluster for many retailers in the U.S., Mattel’s largest market.
Sales declined 6.3 percent to $2.11 billion, the El Segundo, California-based company said in its statement. That trailed analysts’ average estimate of $2.37 billion. Net income increased 20 percent to $369.2 million, or $1.07 a share, from $306.5 million, or 87 cents, a year earlier.
The company boosted its quarterly dividend to 38 cents from 36 cents, marking the fifth straight year it has been increased. Last year it upped the dividend 16 percent.
In the fourth quarter a year earlier, earnings excluding costs from its litigation with MGA Entertainment Inc. were $1.12 a share.
To contact the reporter on this story: Cotten Timberlake in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Robin Ajello at email@example.com