Earnings Preview: Mattel, Inc. (MAT) Q4 2011
By:NewsyStocks   Monday, January 30, 2022 1:36 PM

Mattel is scheduled to release its fourth quarter earnings on Tuesday, January 31. The toymaker is expected to have another good quarter after healthy holiday sales of core products and reports indicating higher ASP for Mattel toys over the season.

Mattel is expected to post profits of $1.01 per share this quarter, with analyst estimates ranging from $0.86 to $1.10. Revenue this quarter is expected to grow almost 5 percent to $2.2 billion

For the full fiscal 2011, Mattel is expected to post profit of $2.14 per share on revenue of $6.34 billion.

A majority of analysts are bullish on MAT with 9 Buy ratings, 1 Overweight rating, and 4 Hold ratings.

Over the last 3 months the 4Q consensus EPS has remained unchanged.

MAT currently was an average target price of $32.00 indicating an upside potential in excess of 8 percent.

Third Quarter Results & Earnings History

In the third quarter, the company reported sales of $2 billion, an increase of 9 percent, and beating analyst consensus. Profit for the quarter grew 11.7 percent year-over-year to $0.86 per share.

Mattel advised that 3Q profitably was adversely affected due to currency movements.

The company revenue results have met or exceeded Wall Street consensus for 4 consecutive quarters.

Our Take

In a post holiday season report, Stern Agee states that Mattel outperformed its biggest competitor, Hasbro in Christmas sales. Average selling prices for Mattel toys increased by 8.4 percent while Hasbro's ASP declined by 2.8 percent during the season.

The report further mentions that Mattel had one of the best-selling toys with ‘Fijit' interactive toy and was sold out at most retailers.  Inventory levels for Mattel on the 26th of December were also lower than Hasbro's indicating stronger sales in spite of higher ASPs.

Interactive toys were a big talking point this season and with ‘Fijit' Mattel was able to compete well with Leapfrog's LeapPad tablet. Mattel continues to remain extremely well positioned in the toy industry both with its core brands like Barbie as wells as newer products. This is a good sign for investors who can expect this stock to continue its strong run in 2012.