Companies and Brands

Mattel Is Not Toying Around When It Comes to Earnings

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When Mattel Inc. (NASDAQ: MAT) 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.

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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