Needham & Company Maintains a 'Strong Buy' on Mattel (MAT); 3Q Sales Beat; EPS In-line; Gross Margin Fall Offset By SG&A Cuts
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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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Needham & Company maintains a 'Strong Buy' on Mattel Inc. (NASDAQ: MAT) price target of $32.00.
Needham analyst says, "MAT’s 3Q sales grew 9%, better than the 5.6% increase we anticipated, and ahead of the 7.4% increase implied in consensus estimates. EPS of $0.86 (vs. $0.78 last year) were above our $0.80 estimate, and in line with consensus. Sales growth was fueled by a 17% increase in Barbie, a 5% increase in Core Fisher Price, and a 4% increase in American Girl. Other contributors to growth include Cars2 and Monster High. A 230 basis point drop in gross margin was worse than we expected, and, we suspect, reflects higher input costs. This was offset by SG&A cost cuts; SG&A expense fell $38 mm, compared to our estimate of an increase of $15 mm."
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 $27.78 yesterday.
Needham analyst says, "MAT’s 3Q sales grew 9%, better than the 5.6% increase we anticipated, and ahead of the 7.4% increase implied in consensus estimates. EPS of $0.86 (vs. $0.78 last year) were above our $0.80 estimate, and in line with consensus. Sales growth was fueled by a 17% increase in Barbie, a 5% increase in Core Fisher Price, and a 4% increase in American Girl. Other contributors to growth include Cars2 and Monster High. A 230 basis point drop in gross margin was worse than we expected, and, we suspect, reflects higher input costs. This was offset by SG&A cost cuts; SG&A expense fell $38 mm, compared to our estimate of an increase of $15 mm."
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 $27.78 yesterday.
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