Mattel CEO Resigns Following Preliminary Q4 Results
Shares of Mattel, Inc. (NASDAQ: MAT) fell to a 52-week low Monday morning after its chairman and CEO, Bryan Stockton, resigned amid disappointing Q4 preliminary results.
The company reported net income of $149.9 million, down sharply from $369.2 million in net income for Q4 2013. Sales were $1.99 billion, roughly 6 percent below Wall Street estimates. Gross margins declined to 50.4 percent of net sales.
The company noted that Christopher Sinclair assumed the role of chairman and interim CEO, effective immediately.
Mattel’s results were dragging down competitor Hasbro, Inc. (NASDAQ: HAS). The shares of the two toymakers were substantially lower, but are paring losses in early trading.
Trader Alan Brochstein commented, "The weak results appear to have been well anticipated by the stock price and an early sell-off quickly found buyers at multi-year lows."
Mattel traded recently at $27.69, down 1.25 percent.
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