Shares of Mattel Inc. (NASDAQ: MAT) plunged about 7.20% by afternoon trade. The toymakers said that net income fell 24% for the fiscal second quarter. The bottom line felt the pressure due to flagging sales of Barbie line of products and a write-down of $14 million, linked to Polly Pocket line of products.
Sales of Barbie, which has been Mattel’s most renowned brand for more than 50 years, fell for the fourth straight quarter. Speaking to analysts, Mattel’s executives said that Monster High and some other lines of dolls products were cannibalizing Barbie’s sales. For the fiscal second quarter, Mattel reported a profit of $73.3 million or 21 cents a share compared to a net income of $96.2 million or 28 cents a share, in the year earlier quarter. The Company did not provide any information on how much it earned excluding onetime items. Analysts had forecasted earnings of 32 cents a share. Revenue rose to $1.17 billion from $1.16 billion but fell short of analysts’ expectation of $1.22 billion. Sales in the North American region fell 2% while it climbed 4% in other markets.
Shares of Yahoo Inc. (NASDAQ: YHOO) rallied about 8% by afternoon trade. Ever since Marissa Mayer took the charge of the internet company in 2012, the stock has gained about 75%. Late on Tuesday, Yahoo handed better-than-expected earnings for the fiscal second quarter. Although revenue fell 1%, Marissa Mayer sounded confident. The CEO said that the Company was on track to achieve its objective, adding that Yahoo added new products almost every week in this quarter. Guidance for the current quarter, however, fell short of Street’s expectation. For the fiscal third quarter, Yahoo expects revenue (excluding traffic acquisition cost) to come between $1.06 billion and $1.1 billion. Analysts polled by Thomson Reuters had expected revenue of $1.12 billion. The Company reported earnings of 35 cents a share for the fiscal second quarter while analysts’ forecast was for 30 cents a share. Revenue stood at $1.07 billion while analysts’ estimate was for $1.08 billion.
United Rentals Inc. (NYSE: URI) climbed about 8% by afternoon trade. The equipment rental company, late last evening, reported earnings of $1.12 a share on revenue of $1.21 billion compared to Wall Street’s expectation for $1.01 a share on sales of $1.23 billion. The Company also backed its full-year guidance.
Shares of St. Jude Medical Inc. (NYSE: STJ) jumped about 6.70% by afternoon trade. The cardiovascular medical device maker’s fiscal second quarter profit slumped 53% due to decline in sales ( unfavorable fluctuations in the foreign exchange market), restructuring costs and debt repayment expenses, but both earnings and revenue best Wall street’s estimates.
Shares of Zagg Inc. (NASDAQ: ZAGG) tumbled about 15% by afternoon trade. The protective covering maker and audio accessories supplier handed downbeat outlook for the fiscal second quarter, late on Tuesday. The Company expects sales of $51 million while analysts’ expectation was for $59 million. Zagg also slashed its full year revenue outlook. It now expects to be in the range of $245 to $252 million while analysts’ forecast was for $274 million.
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