The 10-second takeaway
For the quarter ended March 31 (Q1), Mattel met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.
Margins grew across the board.
Mattel recorded revenue of $995.6 million. The 11 analysts polled by S&P Capital IQ looked for revenue of $986.5 million on the same basis. GAAP reported sales were 7.2% higher than the prior-year quarter's $928.4 million.
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 $0.11. The 13 earnings estimates compiled by S&P Capital IQ anticipated $0.08 per share. GAAP EPS of $0.11 for Q1 were 450% higher than the prior-year quarter's $0.02 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 54.2%, 320 basis points better than the prior-year quarter. Operating margin was 6.6%, 180 basis points better than the prior-year quarter. Net margin was 3.9%, 310 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.22 billion. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $6.81 billion. The average EPS estimate is $2.79.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 676 members out of 765 rating the stock outperform, and 89 members rating it underperform. Among 235 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 224 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 $43.00.
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