Mattel Is Not Toying Around When It Comes to Earnings
Mattel stock rallied early Friday after it reported better than expected quarterly results late on Thursday.
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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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
