Mattel Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Mattel (NASDAQ:MAT) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  Mattel designs and manufactures a variety of toys and games for customers and consumers worldwide.

Mattel Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $1.15 per share, a rise of 7.5% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 16.5% versus last year to $2.54.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of $1.04 per share against a mean estimate of net income of $1, and the quarter before, the company exceeded forecasts by 7 cents with profit of 28 cents versus a mean estimate of net income of 21 cents.

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A Look Back: In the third quarter, profit rose 21.6% to $365.9 million ($1.04 a share) from $300.8 million (86 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4% to $2.08 billion from $2 billion.

Here’s how Mattel traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

mat

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.98 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 2.04 in the second quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 33.8% to $1.65 billion while assets rose 29.9% to $3.27 billion.

Wall St. Revenue Expectations: On average, analysts predict $2.29 billion in revenue this quarter, a rise of 6.5% from the year-ago quarter. Analysts are forecasting total revenue of $6.46 billion for the year, a rise of 3% from last year’s revenue of $6.27 billion.

Key Stats:

On the top line, the company is looking to build a positive trend after last quarter’s growth snapped a string of drops. Revenue fell 2.5% in the first quarter and 0.3% in the second quarter before climbing in the third quarter.

Stock Price Performance: Between January 22, 2013 and January 28, 2013, the stock price dropped $1.21 (-3.2%), from $38.16 to $36.95. The stock price saw one of its best stretches over the last year between April 23, 2012 and May 2, 2012, when shares rose for eight straight days, increasing 6.5% (+$2.06) over that span. It saw one of its worst periods between December 18, 2012 and December 28, 2012 when shares fell for eight straight days, dropping 4.5% (-$1.69) over that span.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)