The 10-second takeaway
For the quarter ended March 31 (Q1), Mattel missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins dropped, and net margins dropped.
Mattel chalked up revenue of $928.4 million. The 12 analysts polled by S&P Capital IQ expected to see revenue of $986.5 million on the same basis. GAAP reported sales were 2.5% lower than the prior-year quarter's $951.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.06. The 14 earnings estimates compiled by S&P Capital IQ predicted $0.07 per share on the same basis. GAAP EPS of $0.02 for Q1 were 60% lower than the prior-year quarter's $0.05 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 51.0%, 130 basis points better than the prior-year quarter. Operating margin was 3.1%, 150 basis points worse than the prior-year quarter. Net margin was 0.8%, 90 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.16 billion. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $6.48 billion. The average EPS estimate is $2.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 635 members out of 728 rating the stock outperform, and 93 members rating it underperform. Among 209 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 185 give Mattel a green thumbs-up, and 14 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 $35.73.
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