The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Mattel missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Mattel recorded revenue of $2.26 billion. The 11 analysts polled by S&P Capital IQ wanted to see revenue of $2.29 billion on the same basis. GAAP reported sales were 4.7% higher than the prior-year quarter's $2.15 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 $1.12. The 13 earnings estimates compiled by S&P Capital IQ predicted $1.15 per share. GAAP EPS of $0.87 for Q4 were 19% lower than the prior-year quarter's $1.07 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 54.3%, 40 basis points better than the prior-year quarter. Operating margin was 16.6%, 720 basis points worse than the prior-year quarter. Net margin was 13.6%, 360 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $980.8 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $6.82 billion. The average EPS estimate is $2.78.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 663 members out of 751 rating the stock outperform, and 88 members rating it underperform. Among 226 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 213 give Mattel a green thumbs-up, and 13 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 $40.45.
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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 recommends 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.