Mattel Beats Up on Analysts Yet Again

Seth Jayson, The Motley Fool
Updated

Mattel (NAS: MAT) reported earnings on Oct. 16. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended Sep. 30 (Q3), Mattel met expectations on revenues and beat expectations on earnings per share.

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


Margins grew across the board.

Revenue details
 Mattel chalked up revenue of $2.08 billion. The 13 analysts polled by S&P Capital IQ expected revenue of $2.07 billion on the same basis. GAAP reported sales were 4.0% higher than the prior-year quarter's $2.00 billion.

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 $1.04. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.99 per share. GAAP EPS of $1.04 for Q3 were 21% higher than the prior-year quarter's $0.86 per share.

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 53.7%, 590 basis points better than the prior-year quarter. Operating margin was 23.5%, 360 basis points better than the prior-year quarter. Net margin was 17.6%, 260 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $2.28 billion. On the bottom line, the average EPS estimate is $1.14.

Next year's average estimate for revenue is $6.44 billion. The average EPS estimate is $2.46.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 658 members out of 747 rating the stock outperform, and 89 members rating it underperform. Among 198 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 187 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 $38.42.

With hundreds of companies out there vying with Mattel for shoppers' dollars, strong brands matter, and they can provide growth for even boring, mature companies -- as long as they're the right ones. That's why we've compiled a special report on "3 American Companies Set to Dominate the World." Click here for instant access to this free report.

The article Mattel Beats Up on Analysts Yet Again originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Mattel. Motley Fool newsletter services recommend 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement