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Mattel isn't well today as earnings loss sinks its stock

Mattel's (NYSE: MAT) Q1 earnings report wasn't as fun as its toys, I can tell you that. Let's start at the top line -- net revenues declined by 2%. Operating income was negative -- the company booked a loss of $36.5 million; in the previous year's quarter, operating income was positive at $20.6 million. Mattel had a net loss of $0.13 per diluted share this year versus net income of $0.03 per diluted share in Q1 2007. Gross margins also saw pressure in the current quarter.

Oh, are the powers that be over at Hasbro gloating today or what! While Mattel's stock price, as of this writing, is down 9%, Hasbro's (NYSE: HAS) stock price is rising almost 8%. That's because Hasbro reported a nice profit instead of a loss -- see Eliza Popescu's entry about that toymaker's delightful earnings missive to investors.

Mattel obviously had problems getting people excited about its various brands during the last few months, but maybe the summer will help the company out, as merchandise based on the new Batman and Speed Racer films are set to hopefully win the hearts of kids and collectors everywhere when the movies hit the multiplexes. And Mattel's stock does have an interesting yield at the moment. Still, if I were trying to decide between Hasbro and Mattel, I think I'd probably go for the former -- Hasbro does have the rights for toys from the new Marvel (NYSE: MVL) projects -- Iron Man, The Incredible Hulk -- and it does have the Transformers and Star Wars brands. There's no way to spin this, I guess -- it just wasn't Mattel's day.

Disclosure: I own shares of Marvel; positions can change at any time.

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Last updated: July 04, 2008: 06:47 PM

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