UPDATE: Mattel Shares Drop After Q4 Results

Shares of

fell more than 4% in pre-market trading after the company reported fourth-quarter results. The El Segundo, California-based company posted quarterly earnings of $149.9 million, or $0.44 per share, compared to $369.2 million, or $1.07 per share, in the year-earlier quarter. The latest quarter included earnings included a negative impact of $0.05 per share from MEGA Brands integration costs and a negative tax impact of $0.03 per share. Its sales slipped 6% to $1.99 billion, versus analysts' estimates of $2.10 billion Gross sales of Barbie declined 12%, while sales of Fisher-Price preschool toys dropped 11%. Sales at its wheels category gained 2%, while sales at the entertainment category dropped 21%. Worldwide gross sales for Mattel Girls & Boys Brands slipped 9%, while sales for American Girl Brands also declined 4%. On a regional basis, gross sales slipped 2% in the North American region, while gross sales for the international region fell 5%. During the fourth quarter, Mattel repurchased 1.6 million shares of its common stock at a cost of around $49 million. The company's board declared a Q1 cash dividend of $0.38 per share, flat versus the first quarter of 2014. "We are disappointed with our results but moving forward with a heightened sense of urgency to make the necessary changes to enhance our brand relevance and improve our execution,” said Christopher Sinclair, Mattel Chairman and Interim CEO. Mattel shares fell 4.83% to $25.60 in pre-market trading.