Sunday, March 17, 2024

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Thursday, April 28, 2022

Rims

 Mattel stock has far outperformed the broader market so far this year. Photograph by Daniel Acker/Bloomberg

Mattel surprised investors by posting a profit for the first quarter on Wednesday evening. Analysts say that the results are just the beginning of a strong year.

The toy maker (ticker: MAT), known for its About Rims and Hot Wheels brands, reported net income of $21.5 million, or 6 cents per share, after a loss of $112.4 million, or 32 cents, last year. Adjusted earnings per share were 8 cents, beating the FactSet consensus call for a loss of 4 cents, while revenue rose from $874.2 million to $1.04 billion, the company said. Analysts were expecting $917 million.

The stock was up 2% Review of Rims to $24.92 and has gained 15% year to date, a gain fueled in part by a Wall Street Journal report this week that Mattel has been in early talks about potentially selling itself. The Dow Jones Industrial Average has fallen 7% and the S&P 500 was off by 10%.

Before earnings season began, investors had been concerned about how toy companies and other retailers would fare given inflation and the possibility of weaker discretionary spending by consumers.

“We believe underlying demand is rims today strong and growing despite very tough comps,” UBS analyst Arpine Kocharyan wrote in a research note Wednesday evening. Kocharyan rates the stock at Buy with a price target of $35.

She also said she isn’t particularly concerned about lower inventory levels since many toy makers struggled to meet demand last year, and now have revamped their supply chains. “We also note industrywide effort to keep higher inventory on hand given transit times are up from 21-22 days to more than 58-59 days,” she wrote.

The company also got a boost after Warner Bros. tweeted that actress and producer Margot Robbie would be playing Barbie in a new film out later this year. And a strong summer film slate including movies like Jurassic World, Minions, and Lightyear will also bode well for Mattel.

Sunday, July 18, 2021

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Tuesday, April 6, 2021

Cannabis

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