Mattel (MAT) Tops Q4 EPS by 10c, Sales Miss

Mattel (NASDAQ: MAT) reported Q4 EPS of $0.11, $0.10 better than the analyst estimate of $0.01. Revenue for the quarter came in at $1.47 billion versus the consensus estimate of $1.5 billion.

Ynon Kreiz, Chairman and CEO, Mattel said: “2019 was an important inflection point in our turnaround. We stabilized our topline after five consecutive years of revenue decline, continued to significantly improve profitability, and achieved positive operating cash flow and positive free cash flow for the first time in three years. We are very encouraged by the consistent progress the company is making and expect to continue to build on this momentum. We remain focused on the execution of our multi-year turnaround strategy to transform Mattel into an IP-driven, high-performing toy company and create long term shareholder value.”

Joseph Euteneuer, CFO, Mattel said: “In 2019, our methodical execution of our strategy to restore profitability generated significant improvements across key metrics, including margins, operating income, EBITDA, and cash flows. We are extremely pleased with our results to date and are very proud of the efforts made by the Mattel team.”

For the year, Net Sales were flat as reported including the negative foreign exchange impact of $75 million, and up 1% in constant currency, versus the prior year. Gross Sales were flat as reported including the negative foreign exchange impact of $92 million, and up 2% in constant currency. Reported Operating Income was $39.2 million, an improvement of $273.6 million, and Adjusted Operating Income was $156.2 million, an improvement of $269.3 million. Reported Loss Per Share was $0.62, an improvement of $0.93, and Adjusted Loss Per Share was $0.30, an improvement of $0.85.

For the fourth quarter, Net Sales were down 3% as reported including the negative foreign exchange impact of $9 million, and down 3% in constant currency, versus the prior year’s fourth quarter. Gross Sales were down 3% as reported including the negative foreign exchange impact of $12 million, and down 2% in constant currency. Reported Operating Income was $67.6 million, a decline of $38.0 million, and Adjusted Operating Income was $109.3 million, a decline of $2.2 million. Reported Earnings Per Share was $0.00, a decline of $0.03, and Adjusted Earnings Per Share was $0.11, an improvement of $0.08.

For earnings history and earnings-related data on Mattel (MAT) click here.

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