Something for the kids, something for the grown-ups: Mattel Inc. (NYSE: MAT) and Anheuser-Busch Companies (NYSE: BUD) reported fourth-quarter results today.

Mattel announced that its fourth-quarter profit rose 15% despite the negative publicity over recalls of millions of Chinese-made toys. Tax gains and strong international sales of Hot Wheels and other toys helped offset the cost of the recalls.

Net income grew to $328.5 million, or 89 cents per share, in the period ending in December, from $286.4 million, or 75 cents per share, in the same quarter of the previous year. Revenue rose 4%, to $2.19 billion, from the year-ago period. Analysts surveyed by Thomson Financial had expected earnings per share of 73 cents on revenue of $2.13 billion.

For 2007, Mattel posted a profit of $600 million, or $1.54 per share, compared with a profit of $592.9 million, or $1.53 per share in 2006. Net sales totaled $5.97 billion in 2007, up 6% from $5.65 billion in 2006

On Thursday, Mattel shares rose 10.9% to close at $21.01. That's up from the 52-week low of $16.42 a couple of weeks ago.

Last week, I looked at toy maker, Hasbro (NYSE: HAS). Today, we turn to toy maker Mattel (NYSE: MAT), which is being recommended by Jocelynn Drake.

The analyst with Schaeffer's Investment Research notes, "Mattel skipped into the earnings spotlight; second-quarter net income jumped 15.2% to $43.5 million, or 11 cents per share, with sales for the 3-month period up 6.5% to $1.02 billion."

Revenue for the second quarter, she notes, was boosted by favorable exchange rates and sales growth for the firm's Barbie and Hot Wheels toys, which rose 6% and 20%, respectively.

She explains, "Heading into the earnings report, investors were extremely skeptical of the shares. Schaeffer's put/call open interest ratio has risen to 0.77, which is higher than 84% of all those taken during the past 52 weeks."

Toy giant Mattel Inc. (NYSE: MAT) released better 1Q 2007 earnings, but the company is still headed in the wrong direction because Barbie is losing her luster.

The good news is that sales revenue was$940.3 million, up 19% from 1Q 2006. Operating income was actually income for the quarter, totaling $20.6 million, compared with an operating loss of $32 million in 1Q 2006. The bad news is that net profit for the quarter fell 60% to $12 million. Much of the decline is explained by a $57 million tax benefit in 1Q 2006. Mattel showed a profit of $0.03 per share for 1Q 2007, compared to $0.08 per share in 1Q 2006, a 62.5 % decrease.

U.S. total sales were up 10% for the quarter, 29% worldwide. Much of this increase was driven by toys for the pre-school market. Fisher-Price toy sales increased 27%. Sales of Hot Wheels (mainly for boys) increased 15%.

Unfortunately, Barbie sales account for 20% of total company sales, and 30% of total company profits. Barbie revenue plunged 21% in the U.S. and increased just 2% worldwide. To counteract this development, Mattel will launch BarbieGirls.com on April 26th, a worldwide social networking site for all things Barbie. Mattel is hoping to build an online community where girls (and boys) can chat and design customized Barbie adventures. Mattel will also bring out Island Princess Barbie later this year.

Prices of toys manufactured in China, 80% of the total toy manufacturing market, have increased along with the price of raw materials. Mattel is betting heavily that youth electronics will offer larger growth prospects rather than dolls, actions figures and board games.