Mattel and Hasbro Earnings Preview from JPMorgan
JPMorgan has provided a look ahead at the third-quarter earnings for Mattel, Inc. (NASDAQ: MAT) and Hasbro, Inc. (NASDAQ: HAS) as both toy manufacturers prepare to release their earnings reports shortly.
Mattel's Growth Potential
Analyst Christopher Horvers from JPMorgan noted Mattel's increasing presence in major retail environments during a pivotal year marked by the 65th Anniversary of the iconic Barbie. This observance has been complemented by exciting product launches, including Mini Barbie Land and Barbie Dreamworld, which have garnered significant consumer interest.
Consumer Spending Trends
Despite these positive developments for Mattel, Horvers cautioned that consumer spending remains cautious. Many buyers are being selective as they allocate their budgets, indicating an overall softness in the market.
Shortened Holiday Impacts
Horvers also pointed out that the upcoming holiday season is notably limited this year, with five fewer days between Thanksgiving and Christmas. Adding to this is the heightened visibility of the upcoming presidential election, which could have further implications for consumer behavior and overall spending.
Stock Ratings and Price Targets
As a result of these factors, JPMorgan has maintained a Neutral rating on Mattel, though the price target has been adjusted upwards from $22 to $23, signaling cautious optimism as the earnings approach.
Looking at Hasbro's Performance
Turning to Hasbro, Horvers highlighted the recent success of the Transformers franchise and the positive reception of new products across various lines such as Beyblade, Play-Doh, and Peppa Pig. These efforts are seen as key components in setting up for what could be a stronger holiday season, particularly after a few years characterized by slower innovation.
Future Innovations with Hasbro
The analyst remains confident that any temporary weakness in Hasbro's stock will be offset by the upcoming innovative products and a robust outlook for its well-regarded Magic and Go! brands.
Stock Performance Reflection
In terms of stock performance, JPMorgan has upgraded its rating for Hasbro to Overweight, increasing the price target from $76 to $82. This change in outlook reflects a favorable sentiment heading into the company's earnings announcement.
Market Expectations and Figures
Hasbro's results are expected to be released the day after Mattel's report, with analysts anticipating earnings of $1.28 per share on revenues around $1.295 billion. Meanwhile, estimates for Mattel stand at 95 cents per share with total revenues expected to reach $1.858 billion.
Closing Remarks on Stock Movements
Recently, Mattel shares experienced a dip, closing down by 1.68% at $18.11, while Hasbro shares fell 1.25% to close at $71.04 at the end of the day's trading.
Frequently Asked Questions
What are JPMorgan's earnings predictions for Mattel?
JPMorgan anticipates Mattel will report earnings of 95 cents per share, with revenues estimated at $1.858 billion.
How many days are there in the holiday season this year?
This holiday season has five fewer days between Thanksgiving and Christmas, which could impact retail sales.
What is the current stock outlook for Hasbro?
JPMorgan has upgraded Hasbro's rating to Overweight and increased its price target from $76 to $82.
What key products have Mattel released recently?
Mattel has recently launched products tied to Barbie's 65th anniversary, including Mini Barbie Land and Barbie Dreamworld.
What are the expected earnings for Hasbro?
Analysts expect Hasbro to report earnings of $1.28 per share on total revenues of around $1.295 billion.
