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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Mattel. Motley Fool newsletter services recommend Mattel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.