Toy Stocks: Mattel Takes a Hit on Low Sales

Toy Stocks: Mattel Takes a Hit on Low Sales

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According to recent earnings reports Mattel Inc. (MAT), the toymaker behind Barbie and Hot Wheels, and saw its first quarter profit drop 53%. This fell short of analyst expectations and shares dropped more than 9.4%. (STAY AHEAD OF THE CURVE: Follow Kapitall on Twitter)

The company says the drop was led by costs tied to acquisitions (Mattel announced the purchase of HIT Entertainment in October) and lower sales for its featured products in North America, reports LA Times.

- Worldwide gross sales of Barbie fell 6% in the first quarter. This is the first drop since 2009.
- Sales of Monster High rose 22%.
- American Girl collections rose 4%
- Sales of The Wheels segment (Hot Wheels/Matchbox and Tyco R/C) fell 6%.
- Sales of Radica and games dropped 17%
- Fisher Price stayed steady at $310.2 million.

Mattel "said timing related to shipping "Cars 2"-related toys last year, plus cautious retailer orders, caused North American revenue to slide 9%." 

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But could that be all? The economy has been questionable – perhaps buying up toys wasn't a top priority for U.S. consumers. If that's the case, will other toy companies be reporting similar earnings?

Here are the top 6 largest toys and games companies trading on U.S. exchanges.

 

Interactive Chart: Use the Compar-O-Matic to compare analyst ratings for the stocks mentioned below:

 

“1. Mattel Inc. (MAT, Earnings, Analysts, Financials): Engages in the design, manufacture, and marketing of various toy products worldwide. Market cap of $11.60B. The stock has gained 39.08% over the last year.

 

“2. Hasbro Inc. (HAS, Earnings, Analysts, Financials): Engages in the design, manufacture, and marketing of games and toys. Market cap of $4.69B. Offers a good dividend, and appears to have good liquidity to back it up–dividend yield at 3.98%, current ratio at 2.39, and quick ratio at 2.04. The stock has lost 18.55% over the last year.

 

“3. LeapFrog Enterprises Inc. (LF, Earnings, Analysts, Financials): Provides technology-based learning platforms worldwide. Market cap of $550.37M. This is a risky stock that is significantly more volatile than the overall market (beta = 2.14). The stock has had a good month, gaining 15.32%.

 

“4. JAKKS Pacific, Inc. (JAKK, Earnings, Analysts, Financials): Designs, produces, markets, and distributes toys and consumer products worldwide. Market cap of $456.39M. Relatively low correlation to the market (beta = 0.71), which may be appealing to risk averse investors. The stock is a short squeeze candidate, with a short float at 14.44% (equivalent to 21.96 days of average volume). The stock has lost 4.73% over the last year.

 

“5. Kid Brands, Inc. (KID, Earnings, Analysts, Financials): Designs, imports, markets, and distributes infant and juvenile consumer products. Market cap of $55.23M. This is a risky stock that is significantly more volatile than the overall market (beta = 2.77). The stock has performed poorly over the last month, losing 18.91%.

 

“6. Gaming Partners International Corporation (GPIC, Earnings, Analysts, Financials): Engages in the manufacture and supply of casino table game equipment worldwide. Market cap of $52.91M. Relatively low correlation to the market (beta = 0.4), which may be appealing to risk averse investors. The stock has gained 0.46% over the last year.

 

 

(Written by Rebecca Lipman. Data sourced from Finviz.)

 

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