Mattel‘s profit fell short of expectations in the holiday quarter as shoppers pulled back from more expensive toys—doll sales plunged—in an apparent response to a tougher economy. Yet analysts tracking the stock remained upbeat, highlighting the company’s ability to pump out cash and a plan to resume share buybacks after nearly a decade.
said on Wednesday that adjusted earnings for the fourth quarter dropped 66% from a year ago to 18 cents per share. The expectation among analysts polled by FactSet was 29 cents. Revenue was $1.4 billion, while analysts had expected $1.68 billion.