## JPMorgan Offers Glimpse into Mattel and Hasbro’s Third-Quarter Earnings: Barbie’s Birthday Boost and Transformers’ Rise
Investors eagerly awaiting the upcoming third-quarter earnings reports from toy giants Mattel, Inc. (MAT) and Hasbro, Inc. (HAS) got a sneak peek from JPMorgan analyst Christopher Horvers. The analyst’s insights provide a glimpse into the factors likely to shape these companies’ performance in the coming months.
Mattel: Riding the Wave of Barbie’s 65th Anniversary
Horvers highlighted Mattel’s strong position, attributing its success to expanding shelf space at major retailers. This growth coincides with Barbie’s 65th anniversary, a milestone that has spurred the release of new products like Mini Barbie Land and Barbie Dreamworld. While acknowledging the potential for continued consumer spending softness and the impact of a shorter holiday season, Horvers believes Mattel’s stock setup is showing signs of improvement. He also noted the upcoming presidential election as a potential headwind for Mattel’s performance. Despite these challenges, JPMorgan maintained a Neutral rating on Mattel but raised its price target from $22 to $23.
Hasbro: Transforming with Innovation and Strong Brands
Turning to Hasbro, Horvers pointed to the recent release of new Transformers products and innovative releases across its Beyblade, Play Doh, and Peppa Pig lines as signs of a stronger holiday season setup after several years of slower innovation. The analyst believes Hasbro’s innovative efforts will drive strong performance, especially for its Magic and Go! brands. He anticipates that any potential weakness in Hasbro’s stock will likely be met with buying due to the company’s improving innovation and positive outlook for the upcoming year. JPMorgan maintained its Overweight rating on Hasbro and raised its price target from $76 to $82.
Key Dates and Analyst Expectations
Mattel is scheduled to report its third-quarter earnings on Wednesday after the market close, followed by a conference call at 5 p.m. ET. The Street expects Mattel to report earnings of 95 cents per share on revenue of $1.858 billion.
Hasbro will report its results on Thursday before the opening bell, followed by a conference call at 8:30 a.m. ET. The Street estimates Hasbro will report earnings of $1.28 per share on revenue of $1.295 billion.
Stock Performance
At the close of trading on Tuesday, Mattel shares ended down 1.68% at $18.11, while Hasbro shares closed 1.25% lower at $71.04.
These insights from JPMorgan provide a valuable starting point for investors as they assess the outlook for Mattel and Hasbro in the coming months. The success of Barbie’s anniversary celebrations, the impact of Hasbro’s innovative products, and the broader economic environment will all play a role in shaping their performance.