Mattel and Visa released their latest earnings report after closing bell tonight. Mattel reported adjusted losses of 32 cents per share on $735.6 million in revenue, compared to the analyst estimates of 17 cents per share in losses and $793.8 million. In the same quarter last year, the toymaker reported $869.4 million in sales.
Visa posted adjusted earnings of 86 cents per share on $4.5 billion in revenue, ,representing a 23% year over year increase on the back of the inclusion of Europe and continuing payment and cross-border volume growth. Wall Street had been looking for 79 cents per share in earnings and $4.3 billion in revenue.
Mattel tanks on weak sales
Mattel reported GAAP losses of 33 cents per share, compared to the 21 cents per share it lost in the same quarter a year ago. The toymaker said its sales in North America and Europe declined, although it recorded sales growth in the Asia Pacific region. Management said they continued to deal with a retail inventory overhang from the holiday shopping season, although Mattel’s key core brands, Barbie, Hot Wheels and Fisher-Price, continued to demonstrate solid performance. The company also said high-growth markets such as China also show continued momentum.
Mattel Girls and Boys Brands revenues fell 16% year over year to $441 million as Barbie sales fell 13% and Other Girls brands sales plunged 34%. Sales in the Wheels category grew 4%, while Entertainment sales plunged 27%.
Fisher-Price Brands sales fell 9% year over year to $246.9 million, while American Girl Brands sales fell 12% to $82.2 million. Construction and Arts & Crafts Brands sales fell 28% to $38.5 million.
Shares of Mattel tumbled by as much as 5.59% to $23.80 in extended trading.
Visa shares rise on strong results
Visa’s GAAP net income declined 75% year over year to 18 cents per share or $430 million, including items related to the reorganization of Visa Europe. Payments volume grew 37% on a constant dollar basis year over year to reach $1.7 trillion. Cross-border volume growth surged 132% on a constant dollar basis due to the inclusion of Europe. When including Europe in last year’s results, cross-border volume grew 11%. Total Visa processed transactions grew 42% to 26.3 billion or 12% when including Europe in last year’s results.
The payments processor’s board of directors also authorized a new $5 billion share repurchase program.
Shares of Visa jumped by as much as 2.96% to $93.85 in after-hours trades.