Mattel Reports Mixed Q3 Results: EPS Beat, Revenue Miss

Mattel, Inc. (NASDAQ:MAT) reported its third-quarter results after Wednesday's closing bell. Here's a look at the details from the report.  

The Details: Mattel reported quarterly earnings of $1.09 per share, which beat the analyst consensus estimate of 95 cents. Quarterly revenue came in at $1.843 billion which missed the analyst consensus estimate of $1.858 billion and represents a decrease from sales of $1.919 billion from the same period last year.

• For the third quarter, Worldwide Gross Billings for Dolls were $757 million, down 14% as reported and in constant currency, versus the prior year’s third quarter, primarily due to declines in Barbie.
• Worldwide Gross Billings for Infant, Toddler, and Preschool were $350 million, down 3% as reported, or 2% in constant currency, primarily due to declines in Baby Gear & Power Wheels.
• Worldwide Gross Billings for Vehicles were $580 million, up 12% as reported, or 13% in constant currency, primarily driven by growth in Hot Wheels.
• Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $364 million, up 2% as reported, or 3% in constant currency, primarily driven by growth in Games, partly offset by declines in Other and Building Sets.

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“We continue to execute on our multi-year strategy to grow our IP-driven toy business and expand our entertainment offering. In line with our priorities this year, we continue to improve profitability, expand Gross Margin, and generate significant cash flow,” said Ynon Kreiz, CEO of Mattel.

“We expect topline growth in the fourth quarter driven by a good holiday season, market share gains and a toyetic theatrical slate and are well positioned for long-term growth and shareholder value creation,” Kreiz added.

Outlook: Mattel sees fiscal year adjusted earnings of between $1.35 and $1.45 per share, versus the $1.44 estimate.

MAT Price Action: According to Benzinga Pro, Mattel shares are up 3.32% after-hours at $18.37 at the time of publication Wednesday.

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