Besides, we don't know if Mattel will have a lot of hot toys this Christmas. Here's what we do know: Mattel earned 3 cents last year in the comparable quarter, so the company experienced some good profit growth. Management is cutting costs as much as it can. Also, the powers that be are keeping an eye on inventories. And in terms of the cash-flow statement, less cash was used for operations this time around according to the actual earnings release.

Mattel could be a trade on a pullback. As I always say, don't play the momentum game on earnings day (unless circumstances are very special). So, I certainly hope you weren't in the market buying shares of Mattel during today's trading session. There's just too much excitement around the stock; getting a decent price would be near impossible. But, in the short term, and ahead of the Christmas season (which will be here before you know it, sad to say on a Friday in July), trading Mattel at this point might make a market player some money considering that this earnings report was a decent one.

Longer term, I do have to concede that I like Hasbro and its brands better. I think Mattel needs to improve the value of its Barbie equity. Something major is required to bring back the excitement of the famous doll and its accessories. So, while management is working those spreadsheets and cutting those costs, I hope that the team is also trying to come up with novel marketing ideas to catalyze the company's most famous institution.

Disclosure: I don't own any company mentioned; positions can change without notice.