The Atlanta Journal-Constitution
Disappointing report reverses good news
Mattel shares fell the most since 2017 as the company released guidance that disappointed investors during a conference call.
$350 million to $400 million
Measure of earnings for Mattel this year
16 percent
Tumble in shares to $14.12 in New York, the biggest intraday loss since October 2017
What happened
A measure of earnings known as Ebitda, which excludes items like taxes and interest, will be in a range of $350 million to $400 million this year, the company said in an investor presentation. While the measure may not be comparable to existing estimates from analysts that project a higher amount, shares fell sharply after the guidance was released.
Disappointing outlook
The disappointing outlook marks a reversal after good news late last week heartened investors following a tough year. Mattel reported Feb. 7 a surprise adjusted profit as it continued to shake off the liquidation
69 percent
How much Mattel stock has rallied this year through Thursday’s close
of major customer Toys “R” Us Inc. with the help of aggressive cost cutting.
Investor criticisms
For years, Mattel had been criticized by investors for not shifting more toward entertainment, like rival toy companies Hasbro Inc. and Lego. But Mattel Chief Executive Officer Ynon Kreiz has been working to change that during his first year on the job, announcing new movies involving Barbie, Hot Wheels and American Girl. While Barbie and Hot Wheels are still seen growing this year, their momentum will slow from last year, the company said. And sales of its Thomas & Friends and American Girl lines are expected to decline.