Mattel rises, Hasbro falls on Friday. Stock of Mattel surged after the company posted strong earnings on Thursday. At another side, Hasbro’s shares sank following a poor earnings result.
The bankruptcy and subsequent failure of Toys R Us hurt Mattel, Hasbro, and other toymakers. However, retailers including Walmart, drugstores, and Target revealed high figures for toy sections this past holiday season.
The market researcher NPD Group reported that Industry-wide sales of toys sank 2 percent last year. On Thursday Mattel’s fourth quarter results beat analyst’ projections. Stock grew
Investors rallied behind Mattel on Thursday after the company exceeded analyst expectations during the fourth quarter. On Friday, shares spiked nearly 27 percent. While Hasbro reported weaker-than-expected profits. However, Investors and analysts had expected poor numbers.
Mattel’s stock is down 6 percent over the past year bringing its market value to $4.3 billion. Stock of Hasbro is down nearly 11 percent over the past year, putting its market value at $11.4 billion.
According to the reports, although Mattel has reached stronger earnings, the loss of Toys R Us affected the revenues of American toy company. Its revenue plunged 5.4 percent to $1.52 billion.
“For Hasbro, in addition to losing hundreds of millions of dollars of revenue from Toys R Us, the liquidation of an additional hundreds of millions of dollars of their retail inventory sold into the market at large discounts was more impactful to 2018 than we and industry experts estimated,” Brian Goldner, CEO of Hasbro said during an earnings conference call Friday