The stock market's recent volatility has shaken many investors, but some had hoped that February's gains so far might mark a turning point for stocks. Unfortunately, that theory went through a significant setback on Thursday, as a reading on inflation that was worse than expected sent the stock market broadly lower. The worst declines were in the Nasdaq Composite (^IXIC 0.10%), but the S&P 500 (^GSPC 0.02%) and Dow Jones Industrial Average (^DJI -0.11%) also fared poorly.
|
Index |
Percentage Change |
Point Change |
|---|---|---|
|
Dow Jones Industrials |
(1.47%) |
(526) |
|
S&P 500 |
(1.81%) |
(83) |
|
Nasdaq Composite |
(2.10%) |
(305) |
Data source: Yahoo! Finance.
Even as the broader market fell, a couple of stocks showed notable gains. Brookfield Asset Management (BN 0.40%) and Mattel (MAT 2.40%) were strong performers in the stock market on Thursday, and below, you'll find out why.
Brookfield manages a winning quarter
Shares of Brookfield Asset Management closed up nearly 5% on Thursday. The Canadian alternative-asset manager reported strong operating results for the fourth quarter and the full 2021 year. It also announced it will look into a strategic move that could unlock value for shareholders.
Brookfield's 2021 was a record year for the asset manager. Net income came in at $12.4 billion for the year, up from just over $700 million in 2020. The company's distributable earnings, a key metric for the asset manager, rose by more than $2 billion year over year to $6.28 billion. Funds from operations climbed to $7.56 billion from $5.18 billion in 2020.
Brookfield's other metrics showed its continued success, as well. Capital inflows totaled $71 billion for the year, with several new funds in key areas like credit markets, real estate, private equity, and infrastructure. Those inflows help generate greater fee-related earnings, and Brookfield's investment success also boosted its carried interest.
Lastly, Brookfield said that it's looking at the possibility of spinning off the portion of its asset-management business that serves institutional clients. That would potentially represent a big transition, but Brookfield is hopeful it could get a valuation of as much as $100 billion for the division. That would mark just the latest in a string of successes for Brookfield shareholders over the long run.
Image source: Getty Images.
Mattel's winning the game
Elsewhere, shares of Mattel finished up nearly 8%. The toymaker's fourth-quarter financial numbers gave investors confidence about its prospects for 2022.
Mattel's sales climbed 10% in the fourth quarter to nearly $1.8 billion, closing a year in which the toymaker posted 19% revenue gains overall. Net income rose to $226 million, with substantial gains even after accounting for some extraordinary gains related to deferred-tax assets. Mattel said that it saw growth in many areas, ranging from dolls, action figures, and building sets to games, vehicles, and infant/toddler-targeted products.
Mattel also released ambitious guidance and goals for the next two years. In 2022, Mattel believes it should be able to grow sales by 8% to 10%, with adjusted earnings coming in at $1.42 to $1.48 per share. The toymaker expects even better results in 2023, with high-single-digit percentage growth on the top line and earnings of at least $1.90 per share on an adjusted basis.
Consumers have made up for lost time in 2021, and Mattel has been a beneficiary of that trend. Now, it's up to Mattel to make sure it keeps up the positive momentum it's built.
