Morgan Joseph Raises Price Target on Mattel (MAT), "Cars 2" Driving Q2 Sales
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Price: $15.03 +1.01%
Rating Summary:
14 Buy, 11 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
14 Buy, 11 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Morgan Joseph is reiterating its Buy rating on shares of Mattel Inc. (NASDAQ: MAT) while raising its price target from $28 to $31.
The company is expected to release its Q2 results before the opening bell on July 15 with a conference following at 8:30 am. The firm is currently forecasting Q2 earnings of $0.16, inline with the Street's estimate of $0.16 and the company's guidance of $0.12-$0.25. MAT reported Q2 earnings in 2010 of $0.14.
Sales are expected to increase 6 percent year-over-year to $1.08 billion, slightly below the Street's estimate of $1.1 billion and inline with the company's guidance of $1.06-$1.19 billion.
The firm believes that MAT's strong balance sheet with net cash of $150 million, solid free cash flow, and remaining share buy-back authorization of $365 million should allow it to remain active in the open market.
An analyst at Morgan Joseph comments, "An added headwind may be in the form of recent litigation with MGA...We think that legal expenditures are probably the largest question market going into the quarter.Q1 legal costs expanded by $26 million year-over-year, which compares to a similar year-over-year legal cost increase at the onset of the previous trial in 2008."
Morgan Joseph is maintaining its Q3, 2011, and 2012 EPS estimates $0.85, $2.07, and $2.36. The firms revenue estimates for Q3, 2011, and 2012 are $1.952 billion, $6.118 billion, and $6.363 billion.
For more ratings news on Mattel Inc. click here and for the rating history of Mattel Inc. click here.
Shares of Mattel Inc. closed at $27.65 yesterday.
The company is expected to release its Q2 results before the opening bell on July 15 with a conference following at 8:30 am. The firm is currently forecasting Q2 earnings of $0.16, inline with the Street's estimate of $0.16 and the company's guidance of $0.12-$0.25. MAT reported Q2 earnings in 2010 of $0.14.
Sales are expected to increase 6 percent year-over-year to $1.08 billion, slightly below the Street's estimate of $1.1 billion and inline with the company's guidance of $1.06-$1.19 billion.
The firm believes that MAT's strong balance sheet with net cash of $150 million, solid free cash flow, and remaining share buy-back authorization of $365 million should allow it to remain active in the open market.
An analyst at Morgan Joseph comments, "An added headwind may be in the form of recent litigation with MGA...We think that legal expenditures are probably the largest question market going into the quarter.Q1 legal costs expanded by $26 million year-over-year, which compares to a similar year-over-year legal cost increase at the onset of the previous trial in 2008."
Morgan Joseph is maintaining its Q3, 2011, and 2012 EPS estimates $0.85, $2.07, and $2.36. The firms revenue estimates for Q3, 2011, and 2012 are $1.952 billion, $6.118 billion, and $6.363 billion.
For more ratings news on Mattel Inc. click here and for the rating history of Mattel Inc. click here.
Shares of Mattel Inc. closed at $27.65 yesterday.
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