Mattel, Inc. Earnings Cheat Sheet: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Mattel, Inc. (NASDAQ:MAT) reported net income above Wall Street’s expectations for the second quarter. Mattel Inc. designs and manufactures a variety of toys and games for customers and consumers worldwide.

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Mattel Earnings Cheat Sheet for the Second Quarter

Results: Net income for Mattel, Inc. rose to $80.5 million (23 cents per share) vs. $51.6 million (14 cents per share) in the same quarter a year earlier. This marks a rise of 56.1% from the year earlier quarter.

Revenue: Rose 14.1% to $1.16 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MAT beat the mean analyst estimate of 16 cents per share. It beat the average revenue estimate of $1.1 billion.

Quoting Management: “For the second quarter, I am very pleased with the continued global momentum across our portfolio, including core brand strength as well as the outstanding performance of the CARS 2 entertainment property,” said Robert A. Eckert, chairman and chief executive officer of Mattel. “Despite the mixed economic news, I am encouraged by our strong operating results and continue to believe we are well-positioned for the all-important second half of the year.”

Key Stats:

Gross margin shrank 0.2 percentage point to 47.9%. The contraction appeared to be driven by increased costs, which rose 14.5% from the year earlier quarter while revenue rose 14.1%.

Revenue has risen the past four quarters. Revenue increased 8.2% to $951.9 million in the first quarter. The figure rose 8.7% in the fourth quarter of the last fiscal year from the year earlier and climbed 2.3% in the third quarter of the last fiscal year from the year-ago quarter.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income fell 33.1% while the figure dropped in the fourth quarter of the last fiscal year.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 5 cents per share.

Companies to Watch: JAKKS Pacific, Inc. (NASDAQ:JAKK), Hasbro, Inc. (NYSE:HAS), Kid Brands Inc (NYSE:KID), LeapFrog Enterprises, Inc. (NYSE:LF), Target (NYSE:TGT), Wal-Mart (NYSE:WMT) and Casdon plc (AMEX:CDY).

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(Source: Xignite Financials)