What happened

Shares of Mattel (NASDAQ: MAT) climbed 8.3% midday on Monday before settling to close up 3%, as the stock continued its trend of choppy trading following the toy maker's better-than-expected earnings report from last week.

Continue Reading Below

So what

Investors seemingly can't quite decide what to make of Mattel's quarter. The stock climbed as much as 10.8% early Friday before giving all of those gains back before the close after the company reported a net loss of $0.53 per share on revenue of $689.2 million. Analysts had expected a net loss of $0.56 per share on revenue of $645 million.

Mattel saw solid growth from its Barbie and Hot Wheels lines, but Fisher-Price and Thomas & Friends both posted declines.

Now what

It's been a wild ride of late for Mattel. The company's stock dropped 6% on April 22 after short-seller Bronte Capital criticized management capital allocation decisions and said the company "will probably go bust." The shares made most of that back the next day, but are still down 67% since early 2014.

The quarterly earnings provided reason to hope the business is improving, with Chairman and CEO Ynon Kreiz on a call with analysts saying that "positive momentum exiting 2018 has continued and is reflected in our operating results." But despite the progress, management has yet to boost its full-year guidance.

There's enough there to provide a glimmer of optimism, but for now the market is not ready to fully commit to the turnaround.

10 stocks we like better than MattelWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has quadrupled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now… and Mattel wasn't one of them! That's right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of March 1, 2019

Lou Whiteman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source Link:
https://www.foxbusiness.com/markets/heres-why-shares-of-mattel-were-up-on-monday

[-0.313567]

Comments

comments

Advertisement