Significant Earnings Shortfalls: Netflix and Mattel Stocks Take a Hit
Major companies experienced significant declines in after-hours trading due to missing earnings expectations. Among these were streaming behemoth Netflix and renowned toy manufacturer Mattel.
Netflix’s shares plummeted by over 4% following the announcement of their Q3 earnings. The company reported earnings of $5.87 per share, a stark contrast to the analyst estimates of $6.97. Despite the revenue of $11.51 billion aligning with expectations, the weaker results were attributed to an ongoing dispute with Brazilian tax authorities.
Meanwhile, Mattel’s stocks tumbled by 7% in the wake of their disappointing third-quarter results. The downturn was primarily driven by a slump in North American sales. The company reported adjusted earnings of 89 cents per share on $1.74 billion in revenue, falling short of analyst expectations of $1.07 per share and $1.83 billion in revenue.
These earnings disappointments come amidst a backdrop of broader market uncertainty. This was reflected by both the S&P 500 and Nasdaq falling around 1% during regular trading. The less-than-stellar results underscore the ongoing challenges companies are grappling with, including economic headwinds, evolving consumer behavior, and regulatory hurdles in international markets.
Source: CNBC