Despite Recalls, Mattel’s Forecast Bright

0

Mattel Inc. is forecast by analysts to report third-quarter profit and sales higher than the same period a year ago, despite high-profile toy recalls, Dow Jones reports.


The consensus estimate of analysts polled by Thomson Financial call for Mattel (MAT) to earn 70 cents a share on revenue of $1.9 billion. In the same period last year, the toy maker earned 62 cents a share on sales of $1.79 billion.


The company reports earnings Oct. 15.


Third-quarter sales at El Segundo, Calif.-based Mattel, whose brands include Barbie, Hot Wheels, Fisher-Price and American Girl, may be lifted by summertime purchases, one analyst suggested.


Total U.S. toy sales in July and August time were up 3.1% on a dollars basis over the same period a year ago, said Banc of America analyst Michael Savner, citing data from market researcher NPD Group. On a unit basis, toy sales were up 1.7% year-over-year.


“We view this data as in-line to positive for our companies,” wrote Savner, who carries neutral ratings on shares of Mattel and rival Hasbro Inc. (HAS) , which reports earnings Oct. 22.


He forecasts Mattel will show growth in its Fischer-Price segment and continued strength overseas, while showing declining U.S. Barbie sales. Mattel generates 40% of sales from international markets.


Mattel is working to shore up its perception ahead of the important holiday shopping season.



Read the full Dow Jones story

.

No posts to display