Mattel Inc. (Nasdaq: MAT) – Q2 FY 2011 Earnings Preview
By:NewsyStocks   Tuesday, July 05, 2011 4:51 PM

Mattel Inc. (Nasdaq: MAT), the world's largest toy manufacturer, is expected to report its second quarter FY 2011 earnings on July 15, 2011. In the last four quarters ending March, 2011, MAT's reported earnings per share has beaten analysts' consensus estimates by margins of 1.30 percent for September 2010 and 3.50 percent for December 2010. However, for the quarter ending June 2010 the reported EPS missed analysts' consensus by margin of 6.70 percent. For the quarter ending March 2011, the company's reported EPS met Wall Street consensus estimate of $0.05 per share.

Mattel designs, manufactures, and markets a broad variety of toy products worldwide through sales to its customers and directly to consumers. The Mattel family is comprised of such best-selling brands as Barbie, Hot Wheels, Matchbox, American Girl, Radica and Tyco R/C, as well as Fisher-Price brands, including Little People, Power Wheels and a wide array of entertainment inspired toy lines. In 2011, Mattel was named as one of FORTUNE Magazine's "100 Best Companies to work For" for the fourth year in a row.

For Q1 FY 2011

  • Mattel reported net income of $16.6 million, down 33 percent, compared with net income of $24.8 million in the first quarter FY 2010.
  • Earnings were also down 28 percent to $0.05 per diluted share, compared with earnings of $0.07 per diluted share in the first quarter FY 2010.
  • Net sales were $951.9 million, up 8 percent compared with $880.1 million in the same quarter last year.
  • On a regional basis, gross sales increased 7 percent in the U.S. and 10 percent in international markets.
  • Cash and equivalents declined by $232 million, compared with a decline of $245 million in the last year's first quarter. Its debt-to-capital ratio was 32.3 percent, compared with 22.4 percent in the same quarter last year.

For Full Year 201

Mattel reported net income of $684.9 million, or $1.86 per share, compared with last year's net income of $528.7 million, or $1.45 per share. The company's debt-to-total-capital ratio of 31.3 percent is in line with the company's capital and investment framework, and its year-end cash balance was $1.28 billion. Net sales for the year rose 8 percent to $5.85 billion.

Analysts Forecast

For the second quarter, analysts' EPS estimates range from a low of $0.09 to a high of $0.25 per share, compared with a consensus estimate of $0.14 per share to $0.16 per share in the year ago quarter. For this quarter, analysts' revenue estimates range from a low of $1.06 billion to a high of $1.19 billion, compared with a consensus estimate of $1.02 billion to $1.20 billion in the same quarter a year ago. For the second quarter, the consensus EPS forecast has remained unchanged for the last 60 days at $0.16 per share. In the last 52 weeks, MAT's stock has been trading in the range of $20.57 to $27.73. The last trading price of the stock was $27.34, up 1.71 percent on June 28. During the current quarter, Moody's rating agency upgraded Mattel's rating by one notch to "Baa1", from "Baa2."