The 10-second takeaway
For the quarter ended June 30 (Q2), Mattel missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased slightly. GAAP earnings per share dropped significantly.
Gross margins were steady, operating margins contracted, net margins contracted.
Mattel logged revenue of $1.17 billion. The 12 analysts polled by S&P Capital IQ anticipated a top line of $1.22 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.21. The 15 earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. GAAP EPS of $0.21 for Q2 were 25% lower than the prior-year quarter's $0.28 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 51.3%, much about the same as the prior-year quarter. Operating margin was 8.1%, 330 basis points worse than the prior-year quarter. Net margin was 6.3%, 200 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.20 billion. On the bottom line, the average EPS estimate is $1.16.
Next year's average estimate for revenue is $6.83 billion. The average EPS estimate is $2.82.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 683 members out of 776 rating the stock outperform, and 93 members rating it underperform. Among 232 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 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 $48.18.
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