Mattel Shares Plunge 30% Post-Earnings as Citi and JPM Cut Ratings
Mattel shares plunged 30% following its Q4 earnings release that missed revenue and profit expectations, while competitor Hasbro’s stock rallied. Citi and JPM cut their ratings on Mattel to neutral and underweight respectively, flagging an uncertain demand outlook and margin pressure.
1. Q4 Earnings Miss
Mattel’s fourth-quarter report fell short of analyst expectations, with both revenue and earnings per share coming in below consensus forecasts as toy sales softened across multiple categories.
2. Sharp Stock Decline and Rival Rally
In response to the earnings shortfall, Mattel’s stock dropped 30% in a single trading day, while rival Hasbro’s shares climbed double digits after delivering stronger-than-expected results.
3. Analyst Downgrades
Following the volatility, Citi lowered its rating on Mattel to neutral and JPM cut its rating to underweight, citing uncertain consumer demand and potential margin headwinds in the year ahead.