Mattel Earnings Beat Expectations

(RTTNews) - Toy maker Mattel (MAT) reported earnings for the fourth quarter that rose from last year and beat the expectation of market analysts. The company surprised Wall Street experts by managing to hold sales steady with last year, despite a significant headwind from currency translation. Meanwhile, cost-cutting initiatives helped boost the bottom line.

The company's Fisher-Price and Hot Wheels products helped bolster sales. This helped offset a decline at its American Girl unit.

Mattel reported net income for the fourth quarter of $215.2 million, up from $149.9 million in the same period last year. Earnings per share climbed to $0.63 from $0.44 in last year's fourth quarter.

Excluding one-time items, the company's adjusted earnings per share came in at $0.67. Analysts polled by Thomson Reuters had been looking for the company to earn $0.61 per share.

Net sales for the period were basically flat with last year, edging up to $2.0 billion compared to $1.99 billion last year. Analysts had projected a decline in sales, with the consensus estimate coming in at $1.91 billion.

Mattel said Fisher-Price sales were up 13 percent on a gross constant currency basis and up 8 percent as reported. Hot Wheels sales rose 28 percent in constant currency and 18 percent once currency fluctuations were accounted for.

Gross sales of the company's iconic Barbie line of dolls was up 8 percent in constant currency. However, currency translation cut that growth to 1 percent.

Meanwhile, the company's American Girls unit saw a sharp decline for the period. The product line's top line retreated 14 percent in constant currency.