Mattel Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Mattel (Nasdaq: MAT) reported earnings on July 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), Mattel beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.

Margins improved across the board.

Revenue details
Mattel booked revenue of $1.16 billion. The 13 analysts polled by S&P Capital IQ predicted revenue of $1.13 billion on the same basis. GAAP reported sales were 0.3% lower than the prior-year quarter's $1.16 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.28. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.28 for Q2 were 22% higher than the prior-year quarter's $0.23 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 51.3%, 340 basis points better than the prior-year quarter. Operating margin was 11.3%, 190 basis points better than the prior-year quarter. Net margin was 8.3%, 140 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.07 billion. On the bottom line, the average EPS estimate is $0.98.

Next year's average estimate for revenue is $6.41 billion. The average EPS estimate is $2.39.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 655 members rating the stock outperform and 89 members rating it underperform. Among 202 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Mattel a green thumbs-up, and 12 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 $36.31.

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