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Monday, October 15, 2012

Analysts expect Mattel, Inc. (NASDAQ:MAT) to report higher quarterly income


Mattel, Inc.(NASDAQ:MAT)’s Barbie dolls are still in demand and ahead of the holiday season its dolls and Monster Highs have seen brisk sales, prompting analysts to forecast higher earnings for the company in the third quarter.

The largest toymaker in the country will be reporting its quarterly results on Tuesday, before the market opens.

Analysts expect earnings of 99 cents per share on revenue of $2.07 billion. Last year it had earned 86 cents on revenue of $2 billion.

Mattel's line up of toys especially Monster High dolls and Barbie dolls are selling better than the toys made by rival Hasbro.

"We expect a strong holiday for Mattel and note many of its toys appear on top toy lists," Sterne Agee analyst Margaret Whitfield wrote in a note.

"Earlier layaway at leading retailers has led shoppers to start the season early, which is positive for reorders."

The holiday season is the time when customers make their maximum purchases of non-essential items such as toys and it is critical for toy makers at this point to have a strong line-up now when the demand is high.

It is also a pointer towards customer confidence as non-essentials are usually purchased when customers feel more secure about their finances.

One positive development during this season has been toy makers and retailers have dropped layaway fees and are also offering it earlier this year.

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