Companies and Brands
Mattel Posting a Profit Is Not Good Enough?
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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 $0.18 in earnings per share (EPS) on $1.44 billion in revenue. Thomson Reuters consensus estimates had called for $0.16 in EPS and $1.51 billion in revenue. And in the third quarter of last year, Mattel said it had a net loss of $0.04 per share and revenue of $1.56 billion.
For the latest quarter, gross sales for Mattel Power Brands were $1.08 billion, down 5% as reported and 2% in constant currency, compared with the prior year’s third quarter. This consisted of Barbie brands up 14%, Hot Wheels brands down 6%, Fischer-Price and Thomas & Friends brands down 12%, and American Girl brands down 31%.
Also during the quarter, Toy Box brands, which includes Owned Brands and Partner Brands, were $523.2 million, down 9% as reported and 6% in constant currency.
The company did not offer any guidance in the report. However, analysts’ consensus estimates call for $0.02 in EPS and $1.62 billion in revenue for the fourth quarter.
Ynon Kreiz, board chair and chief executive of Mattel, commented:
We are on track with the execution of our strategy and have made meaningful progress towards restoring profitability, as we transform Mattel into an IP-driven, high-performing toy company. In the quarter, we achieved Operating Income of $122 million, up 41% versus the same period last year, which is the first time in eight quarters that we have posted year-over-year growth.
Shares of Mattel were last seen down over 4% at $13.24, with a consensus analyst price target of $15.35 and a 52-week range of $12.21 to $19.21.
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