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

Posted Apr 21st 2008 2:45PM by Steven Mallas
Filed under: Earnings Reports, Mattel, Inc (MAT), Hasbro Inc (HAS)

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.

Tags: featured, HAS, Hasbro, inthenews, Iron Man, IronMan, Marvel, MAT, Mattel, MVL, The Incredible Hulk, TheIncredibleHulk

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Reader Comments (Page 1 of 1)

4-21-2008 @ 3:58PM

M.J. said...

Mattel deserves to lose and contimue to lose as do all the other "American" companies working in China and poisoning our children and our way of life all for the almighty dollar. By the way, the rich stockholders don't care about you America,they only care that they hold on to there power and money!

4-21-2008 @ 4:38PM

Adrian said...

I believe Hasbro most definitely has the upper hand with such strong partnerships as Marvel and the popular Star Wars and Transformers brands. Unless someone comes out with a great Hot Wheels movie (I'd go see it if it was done well) that is a hit with the kids (and dads) or maybe Barbie makes a Hollywood Dream Movie that skyrockets sales, Mattell doesn't really seem to have a hold on the current trends and Hasbro has obviously been looking forward and making those deals. Anyway, whose got the money to spend on toys when it's all being spent on gas!
Both are quality companies and icons in the toy biz. (I'm a grandpa now and still love the toys!)
BTW This grandpa needs 2500 customers this year, so, I can buy my grandkids toys for Christmas! I'm doing a lot worse than Mattell! Any business owners or IT Department Heads looking for the best rates for gigabit ethernet? http://ethernet.cgeth.com See which major telecom carriers offer gigabit ethernet in your area! Or FREE Cell Phones here www.CheapestSmartPhones.com (business plans too!)

4-21-2008 @ 7:44PM

paul said...

Heres alittle insight into the start of Mattels problems. I have studied them for at least 13 years. Worked retail jobs to understand distribution problems with Mattel and researched what the kids and collectors are buying. Sold the product for 10 years at that point on the side. Went to college and did multiple projects on them. I then grad. with a marketing degree. I could not even get an interview or any answer to applications. I didn't give up, I went and spent a week at the headquarters trying to get an interview. Finally I talked to someone who worked in Marketing. They loved my resume told me I didn't have a chance because I didn't have an MBA. No offense to anyone with an MBA. But lets do some math here. How many MBA grads have real world experience, street smarts, r/d skills for 10 years like I did at age 24. Mattel if you do read this its time to wake up and hirer people with PASSION and KNOWLEDGE of your product. This just serves as a little lesson on book vs. street smarts. If your willing to be opened minded, I might have something to offer.
Please email me at pauljmeck@aol.com.
p.s
Mr. Eckert. I am ready to speak with you when you