Needham & Company Lifts Numbers on Mattel (MAT) Post Q1

April 18, 2013 7:53 AM EDT
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Price: $30.02 -0.17%

Rating Summary:
    12 Buy, 6 Hold, 0 Sell

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    Up: 30 | Down: 30 | New: 23
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Needham & Company raised estimates and its price target on Mattel Inc. (NASDAQ: MAT) from $42 to $48 following Q1 results and reiterated a Buy rating.

Analyst Sean McGowan weighs in: "MAT reported 1Q sales and EPS above expectations. Sales grew 7% YoY to $996mm, with 5% growth in North America and 9% growth internationally. The girls portfolio, specifically Monster High and American Girl, drove performance in the quarter. Gross margins rose 320 bps YoY to 54.2%, primarily because of a favorable product mix. EPS were $0.11 compared to $0.02 during 1Q12; consensus expectations called for EPS of $0.09. While the company does not provide guidance, it expects to maintain full-year GM in the low to mid fifty percent range with SG&A expenses higher YoY. With a 16% increase in the dividend ($1.44/year) and share repurchases, the company continues to target total shareholder return in the top third to top quartile of the S&P 500. In our view, while the stock may not be quite as attractively valued as it was at the beginning of the year, the quarter was strong enough for us to raise our estimates and maintain our Buy rating."

The firm raised FY 2013 earnings estimates from $2.75 to $2.80 and FY 2014 from $3.15 to $3.30.

For an analyst ratings summary and ratings history on Mattel Inc. click here. For more ratings news on Mattel Inc. click here.

Shares of Mattel Inc. closed at $43.78 yesterday.

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