Mattel Misses Q3 Views

reported weaker-than-expected results for the third quarter on Thursday. The El Segundo, California-based company posted quarterly net income of $223.8 million, or $0.66 per share, compared to $331.8 million, or $0.97 per share, in the year-ago period. Excluding items, the company's earnings slipped to $0.71 per share from $0.98 per share. Its net sales slipped 11.3 percent to $1.79 billion, while sales slipped 4 percent in constant currency. Analysts were expecting earnings of $0.80 per share on revenue of $1.89 billion. The average estimate among 58 Estimize users was for earnings of $0.78 per share and revenue of $1.88 billion. In the North American Region, gross sales dropped 5 percent for the quarter, while sales in the International Region dipped 19 percent. Worldwide gross sales for Mattel Girls & Boys Brands slipped 5 percent in constant currency to $1.12 billion, while sales for the Barbie brand dropped 4 percent in constant currency. Sales for Fisher-Price Brands gained 1 percent in constant currency to $625.3 million, while sales for American Girl Brands slipped 2 percent in constant currency to $109.9 million. Adjusted operating income declined to $321.6 million for the quarter, from $434.5 million in the year-ago period. Mattel's board declared a Q4 cash dividend of $0.38 per share. "Our results for the quarter, excluding the significant impact from currency exchange rates, were broadly in line with our expectations at this stage of our turnaround," said Christopher Sinclair, Mattel Chairman and CEO. "Importantly, we're very encouraged by the progress we are making on reenergizing the company, building momentum in our core brands, improving retail execution, reducing costs and building scale in key emerging markets. As we continue our turnaround efforts, we remain comfortable with our full-year outlook." Mattel shares dropped 1.42 percent to $22.21 in the after-hours trading session.