Mattel Shares Plunge 24.6% on Q4 Revenue and EPS Miss
Mattel shares plunged 24.6%, marking its steepest one-day drop since October 1999, after fourth-quarter revenue of $1.11 billion and EPS of $0.20 missed forecasts. Citigroup and JPMorgan cut ratings to neutral and underweight while five analysts trimmed price targets, citing weaker holiday sales and margin pressure.
1. Q4 Results and Revenue Miss
Mattel reported fourth-quarter revenue of $1.11 billion and earnings per share of $0.20, both below consensus estimates. The shortfall reflected underperformance in core toy segments and heightened competition during the holiday season.
2. Analysts Downgrades and Price Target Cuts
In response to the results, Citigroup lowered its rating to neutral and JPMorgan to underweight, while five research firms trimmed price targets by an average of 15%. Analysts flagged soft holiday demand and near-term margin headwinds from strategic investments.
3. Stock Reaction and Historical Context
Shares tumbled 24.6% to $15.88, the worst one-day percentage decline since October 1999 and trading at multi-year lows. Options activity surged, with call volume outpacing puts and a 50-day call/put ratio ranking in the 98th percentile, signaling heightened speculative interest.