Mattel: stock drops despite jump in profit
(CercleFinance.com) - Mattel shares fell on Wednesday, despite the US largest toymaker posting a jump in fourth-quarter profit, as the company cited a "banner quarter" and its "best performance in years.
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The El Segundo, Californian company said quarterly profit was bolstered by its dolls business, including the Barbie brand, its Fisher-Price line and sales of "Star Wars" merchandise.
Mattel reported earnings of 130.5 million dollars, or 38 cents per share, from break-even the year before, while revenue rose by 10% to over 1.6 billion dollars.
The company also said that it is implementing a new program to further reduce its cost base, expecting to make 250 million dollars of additional cost savings by 2023.
However, the market's reaction was remarkably muted, with the shares down over 4% in early morning trading on Wednesday. As of close yesterday, they had risen by over 60% in the past six months.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
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The El Segundo, Californian company said quarterly profit was bolstered by its dolls business, including the Barbie brand, its Fisher-Price line and sales of "Star Wars" merchandise.
Mattel reported earnings of 130.5 million dollars, or 38 cents per share, from break-even the year before, while revenue rose by 10% to over 1.6 billion dollars.
The company also said that it is implementing a new program to further reduce its cost base, expecting to make 250 million dollars of additional cost savings by 2023.
However, the market's reaction was remarkably muted, with the shares down over 4% in early morning trading on Wednesday. As of close yesterday, they had risen by over 60% in the past six months.
Copyright (c) 2021 CercleFinance.com. All rights reserved.