Proactive Investors - Run By Investors For Investors

The toy story delivers a mixed bag as Hasbro shares tumble on Toys "R" collapse while Mattel soars, thanks to Barbie

Hasbro's results were hit by the collapse of Toys "R" Us in stark contrast to Mattel's better-than-expected earnings, helped by sales of Barbie dolls and Hot Wheels cars
Toys R US store
Hasbro CEO Brian Goldner called 2018 a "very disruptive" year for the toy industry

The toy industry was a study in contrast in Friday’s pre-market trade as Hasbro Inc’s stock (NASDAQ:HAS) tumbled after a disappointing quarter due to the collapse of Toys “R” Us while rival Mattel Inc shares (NASDAQ:MAT) rocketed after reporting a robust fourth-quarter. 

While Mattel shares picked up 16% to hit $14.35 before the opening bell on Friday, rival Hasbro shares sank by 8.7% to $82.40.

READ: Hasbro struggles in 3Q after Toys R Us bankruptcy, job cuts to follow

Hasbro's fourth-quarter results fell short of Wall Street’s estimates as it was hit hard during the holiday period by the closing of Toys "R" Us.

In the three months ended December 30, Hasbro earned $1.33 per share (adjusted) on sales of $1.39 billion. Analysts had called for Hasbro to see a profit of $1.67 per share on revenue of $1.52 billion.

“2018 was a very disruptive year, driven by the bankruptcy and liquidation of Toys “R” US across most of the world and a rapidly shifting consumer and retail landscape,” said Brian Goldner, Hasbro’s CEO in a statement.

“We were not, however, able to recapture as much of the Toys “R” Us business during the holiday period as we anticipated as the effect of its liquidated inventory in the market was more impactful than we and industry experts expected.

Barbie and Hot Wheels lift Mattel's numbers​

In its latest quarter, toy maker Mattel reported better-than-expected earnings, helped by the sales of Barbie dolls and Hot Wheels cars.

The company reported net income of $14.9 million, or $0.04 per share, on revenue of $1.52 billion. The results crushed the forecasts of analysts who had called for the El Segundo, California-based company to post a loss of $0.16 per share on sales of $1.44 billion.

“In terms of regaining top line growth Barbie and Hot Wheels continued their momentum throughout the year,” said Ynon Kreiz, CEO of Mattel, speaking in a conference call late Thursday. “We executed well in our two largest regions North America and Europe and maintained our strength in Latin America and global emerging markets excluding China.”

Contact Ellen Kelleher at [email protected]

View full MAT profile View Profile

Mattel Timeline

Newswire
January 26 2017
Newswire
February 02 2016

Related Articles

Ski wear
April 09 2019
Graphene has been dubbed a “miracle” material, being around 200-times stronger than steel, transparent and able efficiently to conduct heat and electricity
tubes
November 14 2018
The company is a leading global producer of Halloysite clay and owns the only deposit in the western hemisphere big enough for large-scale commercial production
1544205739_Playground.jpg
December 07 2018
The group is also now launching new product lines, including trampoline parks, which complement its soft play parks
Copyright © Proactiveinvestors.com, 2019. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use