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Mattel 4Q results miss Wall Street's expectations

Published on NewsOK Modified: February 1, 2013 at 1:07 pm •  Published: February 1, 2013

Mattel also said it would raise prices globally in 2013 by a low single-digit percentage, effective Jan. 1.

BMO Capital Markets analyst Gerrick Johnson said that although overall results were disappointing there were pockets of strength, like international growth, which rose 8 percent, compared with a 1 percent rise in North America.

"It was a little softer than I was looking for but by no means a disaster," he said.

The toy maker earned $306.5 million, or 87 cents per share, for the three months ended Dec. 31. That compares with $370.6 million, or $1.07 per share, a year ago.

Removing the litigation charge, earnings were $1.12 per share. Analysts surveyed by FactSet expected $1.15 per share.

The $137.8 million litigation charge stems from a long-running legal battle with toymaker MGA Entertainment Inc. over ownership "Bratz" dolls, which is in the process of wrapping up.

Revenue for the El Segundo, Calif.-based company rose 5 percent to $2.26 billion from $2.15 billion. Wall Street forecast $2.3 billion.

Its full-year net income edged up 1 percent to $776.5 million, or $2.22 per share, from $768.5 million, or $2.18 per share, in the prior year. Annual revenue increased 2 percent to $6.42 billion from $6.27 billion.

Shares of Mattel rose 44 cents, or 1.2 percent, to $38.07 in midday trading. They are near their 52-week high of $38.48 set Jan. 24. They traded as low as $30.15 in June.


AP Writer Michelle Chapman contributed to this report.