American Girl, Other Brands Fuel Steady Growth At Mattel

By
A A A

Mattel ( MAT ) shareholders haven't had much to complain about since the market lows of March 2009. Shares are up nearly 300% as the toy maker's brands remain popular around the world.

Some of its best-known brands include Hot Wheels, Fisher-Price, Barbie and American Girl.

In February 2012, Mattel added to this prestigious portfolio by acquiringHIT Entertainment for $680 million, giving it control of the Thomas the Tank Engine and Bob the Builder brands.

In April, Mattel announced solid first-quarter earnings thanks to strong sales of dolls like Monster High, Disney Princess and American Girl. Quarterly profit rose 83% from a year ago to 11 cents a share. Sales growth accelerated for the third straight quarter, rising 7% to $995.6 million. North American sales rose 5%; international sales rose 9%. Its high-end American Girl brand did particularly well in the quarter with sales up 32% to $100.5 million.

In the first quarter, Mattel paid a dividend of 36 cents a share. Its dividend growth rate is 27% and it currently yields 3.1%.

Licensing remains a focal point for Mattel. In September, the company hiredDisney ( DIS ) veteran Jessica Dunn to oversee licensing for old and new brands.

Chart-wise, Mattel continues to consolidate gains in constructive fashion. Its current flat-base-like structure shows a buy point of 48.58, or 10 cents above its May 14 intraday high. An earlier buy point could come if Mattel etches a handle area. A handle forms when a stock drifts lower in light volume, serving to shake out the last remaining willing sellers in the stock. Price and volume action like this often paves the way for a breakout.

Second-quarter results are due July 17 before the open.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Investing Ideas

Referenced Stocks: DIS , MAT

Investor's Business Daily

Investor's Business Daily

More from Investor's Business Daily:

Related Videos

THE COST OF HOUSE FLIPPING
THE COST OF HOUSE FLIPPING          

Stocks

Referenced

Most Active by Volume

83,946,369
  • $16.40 ▼ 1.20%
65,919,147
  • $102.99 ▲ 0.51%
63,004,409
  • $42 ▲ 4.53%
42,618,740
  • $7.93 ▼ 2.94%
41,388,613
  • $78.37 ▼ 0.41%
40,438,996
  • $3.81 ▲ 14.76%
39,835,674
  • $12.32 ▲ 2.41%
38,147,728
  • $12.83 ▼ 2.80%
As of 10/22/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com