Mattel Q1 Results Edge Past Street’s Estimates, Shares Gain (MAT)

Mattel Inc. (NASDAQ: MAT) reported a strong growth in fiscal first quarter earnings on Monday as toy maker’s top line was boosted by robust sales of Monster High and American Girl Dolls while fatter margin also helped driving up the  bottom line.

The El Segundo, California-based Mattel, which is the world’s largest toymaker in terms of sales, witnessed a fairly balanced demand from different markets. While sales in the international markets climbed 9% it rose 5% in the North American region.

Lately, the toy industry has been reeling under tremendous pressure. Amid global macroeconomic uncertainty and rising unemployment parents spent frugally on toys. However, the biggest threat is arising from the proliferation of smartphones and tablets. Nowadays, children and parents are more hooked to these devices than traditional toys.

Nonetheless, Mattel has performed reasonably better than its peers. For Instance; the Monster High dolls have been a big hit in the recent past while some “Other Girls Brands” segment, which includes Disney Dolls, saw sales jumping 56% in the recently concluded quarter.

In the first quarter sales from “American Girls” Dolls line climbed 32%.

Not all brands performed strongly though. Sales of preschool Fisher-Price line declined 7% while sales of Barbie dolls and Wheels fell 2% in the first quarter.

For the fiscal first quarter, the Company reported a profit of $38.5 million or 11 cents a share, compared to a net income of $7.8 million or 2 cents a share, in the year earlier quarter. Net sales climbed 7.2% to $995.6 million.

Analysts’ consensus estimate was for earnings of 9 cents a share on revenue of $986 million, according to a data compiled by Thomson Reuters.

Gross Margin widened to 54.2% from 51%, in the same quarter of last fiscal.

Commenting over the results, Mattel’s Chairman and Chief Executive Officer, Bryan Stockton, said to analysts in statement, “Overall, 2013 is off to a solid start,” adding that results were encouraging across all markets, more particularly in Europe.