Mattel Inc., Advanced Micro Devices, Inc. Miss Earnings Estimates

Mattel Inc., Advanced Micro Devices, Inc. Miss Earnings Estimates

Mattel and Advanced Micro Devices released their latest earnings reports after closing bell tonight. Mattel missed estimates widely, posting adjusted earnings of 71 cents per share, compared to last year’s 98 cents per share, on $1.79 billion in revenue. Analysts had been expecting earnings of 80 cents per share on $1.89 billion in revenue.

AMD reported losses of 17 cents per share on $1.06 billion in revenue. Analysts had been expecting losses of 12 cents per share on $995.8 million in revenue.

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Mattel disappoints—big time

Mattel’s reported earnings were 66 cents per share compared to 97 cents last year. The toy maker said worldwide gross sales declined 3% in constant currencies and 11% on a reported basis.  Worldwide net sales fell 4% in constant currency year over year. Global retail sales are still outpacing shipping and fell 1% in the third quarter.

The company’s Girls and Boys Brands, which includes Barbie, saw revenue decline 5% year over year in constant currency to $1.1 billion, which came up just short of the consensus estimate of $1.2 billion.  Barbie sales fell 4%, while Other Girls brands plunged 20%. Mattel’s Wheels segment saw a 19% increase, while the Entertainment segment saw a 4% decline.

Mattel’s Fisher-Price brand saw sales rise 1% to $625.3 million, while its American Girl Brands saw a 2% decline in sales to $109.9 million. The Construction and Arts and Crafts Brands recorded a 2% increase to $118.5 million.

As of this writing, shares of Mattel were down 2.8% at $21.90 per share in after-hours trades.

AMD takes inventory write-down

AMD reported that its revenue climbed 13% quarter over quarter but fell 26% year over year. Net losses were 25 cents per share. The company’s gross margin fell two percentage points to 23%. The Computing and Graphics business saw a 46% year over year decline and 12% sequential increase in revenue. AMD’s Enterprise, Embedded and Semi-Custom business recorded a 13% sequential increase and 2% year over year decline in revenue. The All Other category’s operating loss widened to $61 million in the quarter.

AMD also said tonight that it wrote down $65 million worth of inventory and signed a joint venture agreement for manufacturing with Nantong Fujitsu Microelectronics. The write-down had a negative impact of 8 cents per share.

For the fourth quarter, AMD expects a 10% decline in revenue, +/- 3%, quarter over quarter.

As of this writing, shares of AMD were up 1.52% at $2 per share in after-hours trading.

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