Mattel, Inc. (NASDAQ: NASDAQ:MAT)
One of the most famous American companies that manufactures toys for children, established in 1945 in El Segundo, California, reported their fiscal quarterly earnings on Thursday October 26th, 2017 after the market closed for trading.
The name is so highly recognized that even children perceivably as young as three or four probably know that Mattel makes at least one of their toys. However, things are not looking great at the company as a result of a few variables.
One of these variables is that Toys R Us filed for chapter 11 bankruptcy protection which will be a challenging feat for Mattel to deal with. Obviously Mattel cells the mother load of their products through that multinational corporation.
Another was that worldwide sales were reportedly down about 13% this quarter. That is an astronomical decent in sales for the company. And thirdly, the company had to suspend their quarterly dividend which was $0.60 per share which equated to 3.88% per year.
Shares closed the regular trading session at $15.37 which was only down $0.08 on the day. However, in the aftermarket session shares closed down $2.99 which is 19.45% closing at $12.38.
Earning Numbers
The company reported Losing -$603 million dollars. Earnings were just $0.09 per share- the average earnings estimate was $.56 cents per share(this takes into account adjustments for one-time expenses and non-recurring costs). Revenues were $1.56 billion, falling short of the $1.84 billion analysts were anticipating.
Company Comments
Margo Georgiadis, CEO of Mattel had this to say to investors:
“Our Q3 performance was clearly disappointing, led by compression in North America driven by Toys “R” Us filing for bankruptcy, tighter retailer inventory management and challenges with certain underperforming brands, despite these challenges, we are making strong progress against our transformation plan, which we believe will deliver step change revenue growth and profitability. To accelerate progress toward these goals, with our new leadership team in place, we are taking bold steps to simplify our business and right size our cost structure in alignment with our strategy. This will enable us to move faster to realize our most attractive opportunities as well as to unlock significant resources to invest in our transformation. We are optimistic about the future of Mattel and our ability to reposition the company to drive enhanced returns for shareholders.”
MAT Chart
The above price chart shows the intraday action on the left. The Shaded area on the right is the after-hours session. After shares sold off hard they tried to bounce a bit but then went sideways until the 8 p.m. close. Many eyes will be on this stock in the morning however- as it looks like it will be opening up at new 52-week lows.
Company Profile
Mattel, Inc. designs, manufactures, and markets a range of toy products worldwide. The company operates in three segments: North America, International, and American Girl.
It offers dolls and accessories, vehicles and play sets, and games and puzzles under the Mattel Girls & Boys brands, including Barbie, Monster High, Ever After High, Polly Pocket, DC Super Hero Girl, Disney Classics, Hot Wheels, Matchbox, CARS, DC Comics, WWE Wrestling, Minecraft, Max Steel, Little Mommy, BOOMco., and Toy Story.
The company also provides its products under the Fisher-Price brands, such as Fisher-Price, Little People, BabyGear, Laugh & Learn, Imaginext, Thomas & Friends, Dora the Explorer, Mickey Mouse Clubhouse, Disney Jake, the Never Land Pirates, and Power Wheels.
In addition, it offers its products under the American Girl brands comprising Truly Me, Girl of the Year, BeForever, Bitty Baby, and WellieWishers; and construction, and arts and crafts brands, such as MEGA BLOKS, RoseArt, and Board Dudes, as well as publishes the American Girl magazine.
Mattel, Inc. sells its products directly to consumers via its catalog, Website, and proprietary retail stores, as well as directly to retailers, including discount and free-standing toy stores, chain stores, department stores, and other retail outlets; to wholesalers; and through agents and distributors. Mattel, Inc. was founded in 1945 and is headquartered in El Segundo, California.