Mattel Misses Overall - Analyst Blog
01 Fevereiro 2013 - 10:35AM
Zacks
Mattel Inc.’s (MAT) fourth quarter 2012
adjusted earnings of $1.12 per share missed the Zacks Consensus
Estimate by 1.75% but grew 4.7% year over year. Year-over-year
increase in net sales led to the growth in earnings. On a
reported-basis, including a litigation charge, earnings per share
were 87 cents, down 18.7% year over year.
During the quarter, net sales grew 5.0% year over year to $2.26
billion despite an adverse foreign currency impact of 1 percentage
point. Other girls’ brand, American Girls as well as Fisher-Price
Brand were major contributors to sales growth. However, revenues
fell shy of the Zacks Consensus Estimate of $2.30 billion.
Quarter Highlights
Worldwide gross sales were $2.50 billion, up 6.1% year over year.
Gross sales from North America (comprise the U.S., Canada and
American Girl) increased 5% year over year while
international gross sales leaped 8.0% year over year, despite an
adverse currency impact of 2 percentage points.
Mattel’s product segment comprises Mattel Girls & Boys Brands,
Fisher-Price Brands and American Girl Brands. Gross Sales for
Mattel Girls & Boys Brands business unit expanded 5% year over
year to $1,411.5 million. Sales for Barbie was down 4% but for
Other Girls Brands were up 55% buoyed by Monster High brand.
Gross sales for the Wheels business were down 1%, mainly due to
Matchbox. The sales for Entertainment business plummeted 13% hurt
by the sluggish business in the Cars 2 movie property.
Fisher-Price Brands sales climbed 6% to $744.5 million while the
American Girl line leaped 13% to $320.8 million.
Gross margin expanded 40 basis points (bps) year over year to 54.3%
while operating margin declined 610 bps to 16.6%. Increased Other
selling and administrative expenses put pressure on the operating
margin.
Full Year Highlights
For full year 2012, adjusted earnings per share were $2.47,
which missed the Zacks Consensus Estimate by around 3.1% but grew
13.3% year over year.
On a reported-basis, earnings per share were $2.22 cents, up 1.83%
year over year. Worldwide net sales were up 2% to $6.42 billion,
which missed the Zacks Consensus Estimate of $6.46 billion.
Dividend
During the quarter, the company declared a cash dividend of 36
cents per share for the first quarter of 2013, reflecting an
annualized dividend of $1.44 per share. This represents a 16%
increase to last year’s total dividend.
Our Take
Mattel currently carries a Zacks Rank #3 (Hold). After reporting
better-than-expected results for two successive quarters, Mattel
performed below expectations this quarter. Although the company’s
increasing international footprint, particularly in the emerging
markets and new franchises and entertainment partnerships remain
positives for the stock, we believe, increasing input costs and
tough retail environment remain the areas of concern.
However, growth in revenue and solid dividend distribution amid a
backdrop of stringent economy comes across as a ray of hope for
investors.
Some other toy companies which will likely report this month are
Hasbro Inc. (HAS), LeapFrog Enterprises
Inc. (LF) and JAKKS Pacific Inc. (JAKK).
Hasbro is slated to report its fourth quarter 2012 results on Feb 7
while LeapFrog and JAKKS Pacific will likely report on Feb 6 and
Feb 18, respectively.
HASBRO INC (HAS): Free Stock Analysis Report
JAKKS PACIFIC (JAKK): Free Stock Analysis Report
LEAPFROG ENTRPS (LF): Free Stock Analysis Report
MATTEL INC (MAT): Free Stock Analysis Report
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