LONDON, UK / ACCESSWIRE / December 01, 2017 / Active-Investors free earnings report on Mattel, Inc. (NASDAQ: MAT) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/'symbol=MAT. The Company posted its financial results on October 26, 2017, for the third quarter of the fiscal year 2017. The Company reported lower than expected revenue and earnings. Register today and get free access to our complimentary member's area where many more reports are available:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Mattel most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:
www.active-investors.com/registration-sg/'symbol=MAT
Earnings Highlights and Summary
For the three months ended September 30, 2017, Mattel's net revenue decreased 13%, or 14% on a constant currency basis, to $1.56 billion from $1.80 billion in Q3 FY16. The decrease was due to Toys R Us filing for bankruptcy, tighter retailer inventory management, and challenges with certain underperforming brands. The net revenue numbers were below analysts' expectations of $1.81 billion.
For the reported quarter, the Company's International region's net revenue increased 1% to $675.2 million from $665.9 million in Q3 FY16. For the reported quarter, the Company's North American region's net revenue decreased 22% to $885.8 million from $1.13 billion in Q3 FY16.
During Q3 FY17, Mattel's gross profit decreased 26% to $647.2 million from $870.8 million in the same period of last year. During Q3 FY17, the Company's gross margin decreased 700 basis points to 41.5% of revenue from 48.5% of revenue in Q3 FY16. For the reported quarter, the Company's adjusted gross margin decreased 550 basis points to 43.0% of revenue from 48.5% of revenue in Q3 FY16.
For the reported quarter, Mattel's advertising and promotion expenses decreased 11% to $179.7 million from $202.9 million in Q3 FY16. During Q3 FY17, the Company's selling and administrative expenses increased 9% to $381.8 million from $350.5 million in the comparable period of last year.
During Q3 FY17, Mattel's operating income decreased 73%, or 74% on a constant currency basis, to $85.7 million from $317.4 million in Q3 FY16. During Q3 FY17, the Company's operating margin decreased 1220 basis points to 5.5% of revenue from 17.7% of revenue in the corresponding period of last year. During Q3 FY17, Mattel's adjusted operating income decreased 50.7% to $159.7 million from $324.1 million in Q3 FY16. During Q3 FY17, the Company's adjusted operating margin decreased 780 basis points to 10.2% of revenue from 18.0% of revenue in Q3 FY16.
For the reported quarter, Mattel's net income was negative $603.3 million compared to positive $236.3 million in Q3 FY16. During Q3 FY17, the Company's diluted earnings per share (EPS) was negative $1.75 compared to positive $0.68 in the same period of last year. During Q3 FY17, the Company's adjusted diluted EPS decreased 87.1% to $0.09 from $0.70 in Q3 FY16. The adjusted diluted EPS was below analysts' expectations of $0.56.
Balance Sheet
As on September 30, 2017, Mattel's cash and equivalents decreased 39% to $181.3 million from $297.1 million as on September 30, 2016. For the reported quarter, the Company's net long-term debt decreased 11.6% to $1.89 billion from $2.13 billion in Q4 FY16.
For the reported quarter, the Company's net accounts receivables decreased 1.5% to $1.51 billion from $1.53 billion in the third quarter of 2016. For the reported quarter, the Company's accounts payables and accrued liabilities decreased 3.1% to $1.28 billion from $1.32 billion in Q3 FY16.
During FY17, Mattel's YTD cash provided by operating activities was negative $740 million compared to negative $331 million in FY16.
For the reported quarter, the Company's total debt to total capital ratio was 66.6% compared to 50.2% in Q3 FY16.
Stock Performance Snapshot
November 30, 2017 - At Thursday's closing bell, Mattel's stock was slightly up 0.05%, ending the trading session at $18.25.
Volume traded for the day: 5.32 million shares.
Stock performance in the last month - up 29.25%; and previous three-month period - up 12.52%
After yesterday's close, Mattel's market cap was at $6.37 billion.
The stock is part of the Consumer Goods sector, categorized under the Toys & Games industry. This sector was up 0.3% at the end of the session.
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