Mattel Cut to Underperform at Zacks (MAT)
Mattel (NYSE:MAT) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research note issued to investors on Friday. They currently have a $32.00 price target on the stock. Zacks‘s price target would indicate a potential downside of 7.78% from the stock’s previous close.
Zacks’ analyst wrote, “We downgrade our recommendation on Mattel to Underperform from Neutral due to dismal second-quarter 2014 results. Adjusted earnings of $0.03 per share missed the Zacks Consensus Estimate of $0.19 per share by 84.2% and also declined 85.7% year over year. The significant downside was due to weak sales and lower margins. Net sales of $1.06 billion declined 9% year over year and also missed the consensus mark by 8.8%, reflecting poor performance in the domestic as well as international markets. Sales of Barbie and Fisher-Price dropped significantly during the quarter. In fact, both these flagship brands have been posting soft sales since 2013 due to a weak consumer spending environment that has compelled customers to reduce their non-essential purchases. Moreover, the company intends to increase marketing and advertising spending in the second half of the year, which will further dent profitability.”
Mattel (NYSE:MAT) traded down 0.49% during mid-day trading on Friday, hitting $34.53. 1,431,199 shares of the company’s stock traded hands. Mattel has a 52-week low of $34.46 and a 52-week high of $47.94. The stock’s 50-day moving average is $35.86 and its 200-day moving average is $37.74. The company has a market cap of $11.666 billion and a P/E ratio of 14.87.
Mattel (NYSE:MAT) last issued its quarterly earnings data on Thursday, July 17th. The company reported $0.08 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.18 by $0.10. The company had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.19 billion. During the same quarter in the previous year, the company posted $0.21 earnings per share. The company’s revenue for the quarter was down 9.1% on a year-over-year basis. Analysts expect that Mattel will post $2.17 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Friday, September 19th. Investors of record on Wednesday, August 27th will be paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a dividend yield of 4.38%. The ex-dividend date is Monday, August 25th.
Other equities research analysts have also recently issued reports about the stock. Analysts at MKM Partners cut their price target on shares of Mattel from $45.00 to $41.00 in a research note on Friday, July 18th. They now have a “buy” rating on the stock. Separately, analysts at Needham & Company LLC downgraded shares of Mattel from a “buy” rating to a “hold” rating in a research note on Friday, July 18th. They now have a $41.00 price target on the stock. Finally, analysts at B. Riley cut their price target on shares of Mattel from $39.00 to $35.00 in a research note on Friday, July 18th. They now have a “neutral” rating on the stock. Three research analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $39.38.
Mattel, Inc (NYSE:MAT) designs, manufactures and markets a variety of toy products worldwide which are sold to its customers and directly to consumers.
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