Big Earnings Movers: Mattel, Inc. (NASDAQ:MAT)

Mattel, Inc. (NASDAQ:MAT) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $-0.13 per share on revenue of $869.4M. Analysts had been modeling earning per share of $-0.07 with $861.08M in revenue.

Mattel, Inc. (NASDAQ:MAT) reported worldwide gross sales down 1% in constant currency, worldwide net sales down 2% in constant currency, adjusted operating loss of $36.0 million and adjusted net loss per share of $0.13.

First Quarter Highlights

• Worldwide gross sales down 1% in constant currency, and down 6% as reported.


• Global retail sales closely aligned with shipping, up 2% year-to-date.


• Fisher-Price worldwide gross sales up 9% in constant currency, and 3% as reported; Hot Wheels worldwide gross sales up 11% in constant currency, and 4% as reported; Barbie worldwide gross sales flat in constant currency, and down 3% as reported.


• Adjusted operating loss of $36.0 million, compared to adjusted operating loss of $14.6 million in the prior year, and reported operating loss of $49.1 million, compared to reported operating loss of $54.5 million in the prior year.


• Adjusted loss per share of $0.13, which reflects the negative impact in currency exchange rates of $0.07, compared to adjusted loss per share of $0.08 in the prior year; and reported loss per share of $0.21, which reflects the negative impact from changes in currency exchange rates of $0.13 (including $0.06 per share related to Venezuela currency devaluation), compared to reported loss per share of $0.17 in the prior year.

Capital Deployment

• Board declared a 2016 second quarter cash dividend of $0.38 per share, which is flat compared to the second quarter of 2015.

Mattel, Inc. earnings per share showed a decreasing trend of -25.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 179%.Analysts project EPS growth over the next 5 years at 12.2%. It has EPS annual decline over the past 5 fiscal years of -10.3% when sales declined -0.5. It reported -5.8% sales drop, and -24.7% EPS decline in the last quarter.

The stock is trading at $31.88, up 70.72% from 52-week low of $19.45. The stock trades down -7.14% from its peak of $34.76 and 7.97% above the consensus price target of $34.42. Its volume clocked up at 3.2 million shares which is lower than the average volume of 3.96 million shares. Its market capitalization currently stands at $10.82B.