Mattel Is Not Toying Around When It Comes to Earnings

By Chris Lange Published Oct 23, 10:58AM EDT

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Mattel Is Not Toying Around When It Comes to Earnings — © CTRPhotos / Getty Images

When Mattel Inc. (NASDAQ: MAT | MAT Price Prediction) reported its most recent quarterly results after the markets closed on Thursday, the toymaker said that it had $0.95 in earnings per share (EPS) on $1.63 billion in revenue. The consensus estimates had called for $0.38 in EPS and $1.46 billion in revenue. In the third quarter of last year, Mattel said it had EPS of $0.26 and revenue of $1.48 billion.

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For the third quarter, net sales in the North America segment increased by 13% as reported and in constant currency, versus the prior year’s third quarter. This was driven by growth in Dolls, Action Figures, Building Sets, Games, among others.

Net sales in the International segment increased 8% as reported and 11% in constant currency. This was driven by the same categories as North American sales.

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A further breakdown of worldwide gross sales:

Dolls: Increased 22% year over year to $690.5 million, an increase of 24% in constant currency
Infant, Toddler and Preschool: Fell 6% to $404.1 million, a drop of 5% in constant currency
Vehicles: Increased 6% to $369.4 million, or up 8% in constant currency
Action Figures, Building Sets, Games and Other: Grew 14% to $354.5 million, and similar in constant currency

Mattel’s cash and cash equivalents totaled $452.2 million at the end of the quarter, up from $218.3 million at the end of the same period last year.

The company offered no guidance in the report. However, analysts’ consensus estimates are $0.30 in EPS and $1.49 billion in revenue for the fourth quarter.

Mattel stock traded up about 8% on Friday to $13.96, in a 52-week range of $6.53 to $14.83. The consensus price target is $13.08.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.