Mattel's Q1 Profit Drops, But Beats Street As Sales Increase 18.5%

Mattel says Q1 net profit was down 60% to $12 million, or $0.03/share, negatively impacted by a tax benefit in the same period last year. Still, Mattel topped street estimates of -$0.05/share. Its revenues of $940.3m nearly beat analysts' average estimate of $848m by $100m. CEO Robert Eckert commented that he's, "pleased with the performance of our strong portfolio of brands, including nice increases in the Fisher-Price and Wheels businesses and continued strength of the Disney/Pixar 'Cars' entertainment property." Mattel is trading up about 1.4% to $28.75 in pre-market activity on thin volume of only 1,000 shares. It lost 1.5% to $28.34 on Friday and has a 52-week trading range of $15.81 - $29.71.

Sources: Press release, MarketWatch
Commentary: Barron's Baby Boomer Stocks • Jim Cramer's Take on Mattel • Mattel's Q4 Earnings Worse Than They Appear
Stocks/ETFs to watch: Mattel (MAT). Competitors: Hasbro (HAS). ETFs: PowerShares Dynamic Consumer Discr (PEZ)

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