Struggling El Seguno toymaker Mattel Inc. released second-quarter earnings after markets closed Thursday, reporting a smaller loss than analysts had expected.
The company’s sales for the quarter ended June 30 were $988 million, down 7 percent from the same period a year ago and also below the $992 million in sales analysts had expected. Though sales fell, Mattel executives said sales were flat after accounting for currency exchange rates.
Mattel’s net loss for the quarter was $11.4 million (-3 cents a share), compared with net income of $28.3 million (8 cents a share) in the same quarter last year. Analysts had expected a poorer showing, estimating a net loss for the quarter of 5 cents a share.
Sales for Mattel’s marquee Barbie brand dropped 11 percent compared to the same quarter a yearago, while Fisher-Price Brands’ sales climbed 9 percent. Sales for American Girl Brands rose 1 percent.
Mattel Chief Executive Christopher Sinclair said in a statement the company made “solid progress” in the second quarter.
“Our financial results in the quarter largely met our expectations, and we are encouraged by improved performance across our core brands, as well as strong momentum in emerging markets like China and Russia,” Sinclair said. “Although we are still early in our turnaround effort, I believe we are taking all the right steps to be more competitive in the growing global toy industry.”
Mattel shares closed the day at $25.15, down about 2 percent for the day, though shares rebounded slightly in after-hours trading.
East West Beats Estimates
Pasadena’s East West Bancorp Inc. reported second-quarter earnings after markets closed on Wednesday, beating analyst expectations but failing to inspire investors.
For the three months ended June 30, the parent of lender East West Bank earned net income of $98.7 million (68 cents a share), up 17 percent from income of $84.3 million (59 cents a share) in the same quarter last year. Analysts had expected income of 65 cents a share.
The earnings boost came despite sharply lower interest margins compared to last year’s second quarter. In the year-ago period, East West’s net interest margin was a healthy 4.2 percent, but that shrank to 3.3 percent in the most recent quarter.
But the bank made up for those lower margins by growing its book of loans. During the second quarter, it added about $588 million in loans, a pickup of 3 percent that puts its total loan receivables at $22.2 billion. Deposit growth in the quarter was less impressive, with total deposits growing by just 1 percent.
Despite the earnings beat, East West shares lagged Thursday following the previous day’s announcement. Shares closed at $44.62, down 2 percent from Wednesday’s close.
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