Mattel, Hasbro Ahead Of Earnings, Holiday Season: JPMorgan Says Consumers ‘Remain Soft’

JPMorgan offered a preview of third-quarter earnings for Mattel, Inc. MAT and Hasbro, Inc. HAS before the toymakers report later this week. 

Mattel: JPMorgan analyst Christopher Horvers highlighted Mattel’s success in expanding shelf space at major retail partners which coincides with Barbie’s 65th Anniversary and the release of Mini Barbie Land and Barbie Dreamworld. 

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While the analyst said the stock’s setup is starting to improve, he also warned consumers remain soft and “very choiceful in how they spend money.”

Horvers also pointed to a shorter holiday season with five fewer days between Thanksgiving and Christmas as well as the presidential election as potential drags on Mattel’s stock. 

The JPMorgan analyst maintained a Neutral rating on Mattel, but raised its price target from $22 to $23.

Mattel is set to report on Wednesday after the market close, followed by a conference call to discuss the results at 5 p.m. ET. According to data from Benzinga Pro, the Street estimates Mattel will report earnings of 95 cents per share on revenue of $1.858 billion.

Hasbro: Horvers pointed to Hasbro’s recent Transformers release and new products across its Beyblade, Play Doh and Peppa Pig lines as the “start of a stronger holiday setup after several years of more glacial innovation.” The analyst also expects any weakness in the stock to be bought given Hasbro’s improving innovation and a strong year ahead for the company’s Magic and Go! brands.   

JPMorgan maintained its Overweight rating on Hasbro and raised its price target from $76 to $82 heading into the company’s third-quarter report. 

Hasbro is set to report its results on Thursday before the opening bell, followed by a conference call at 8:30 a.m. ET. According to data from Benzinga Pro, the Street estimates Hasbro will report earnings of $1.28 per share on revenue of $1.295 billion.

MAT, HAS Price Action: According to Benzinga Pro, Mattel shares ended Tuesday’s session down 1.68% at $18.11 and Hasbro shares closed 1.25% lower at $71.04.

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