1127 GMT - Trust in toy maker Mattel is strained because of poor expectation management, Jefferies analyst Kylie Cohu writes. Shares in the company fall 30% premarket after holiday sales landed short of what the company had guided. The company issued lower-than-expected profit guidance for 2026 while increasing the amount it invests. "We believe the Street was not positioned for a sizable miss or heavier investment," Cohu says. The California company's outlook remains bright if it can successfully execute a shift to more digital and entertainment products, Cohu adds. "Despite shaken trust post‑earnings, [the company's] valuation ... remains reasonable," Cohu says. (josephmichael.stonor@wsj.com)
(END) Dow Jones Newswires
February 11, 2026 06:28 ET (11:28 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.