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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