The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Mattel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share expanded significantly.
Margins grew across the board.
Mattel chalked up revenue of $2.08 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $2.07 billion on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $2.00 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.04. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.99 per share. GAAP EPS of $1.04 for Q3 were 21% higher than the prior-year quarter's $0.86 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.7%, 590 basis points better than the prior-year quarter. Operating margin was 23.5%, 360 basis points better than the prior-year quarter. Net margin was 17.6%, 260 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.28 billion. On the bottom line, the average EPS estimate is $1.14.
Next year's average estimate for revenue is $6.44 billion. The average EPS estimate is $2.46.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 658 members out of 747 rating the stock outperform, and 89 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 give Mattel a green thumbs-up, and 11 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Mattel is outperform, with an average price target of $38.42.
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