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.
Dov Gertzulin's DG Capital is having a strong year. According to a copy of the hedge fund's letter to investors of its DG Value Partners Class C strategy, the fund is up 36.4% of the year to the end of June, after a performance of 12.8% in the second quarter. The Class C strategy is Read More
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.