Mattel stock price hits new highs after profitable year.Stock split also proves to be pleasing to stockholders Mattel Inc.'s strong 1995 earnings, its promising toy lineup for this year, and a recent stock split that pleased shareholders have driven the toy giant's stock price to new highs recently. The shares' upward movement has also no doubt been helped along by the general surge in the stock market as a whole, said David Leibowitz, an analyst with New York-based Burnham Securities. Mattel's stock has clambered to new 52-week highs a few times during the past few months. Most recently, it hit $35.375 a share on Feb. 22. From there it slipped a bit to close at $33.625 March 1, just before the stock split. The El Segundo-based company reported profits surged 18 percent during 1995. It posted net income of $358 million, or $1.58 a share, compared with $303 million, or $1.33 a share, a year earlier. However, it incurred a $70 million restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. to its earnings, which it took in its 1994 fourth quarter. Sales were $3.64 billion in 1995, a 14-percent increase over 1994's $3.2 billion. MATTEL INC. (MAT/NYSE) Qtr. Dec. 31: 1995 1994 Revenues $1,155.3 $1,030.4 Net income $122.0 $42.9 Average shares outstanding 224.7 224.5 EPS $0.50 $0.19 Closing price Mar. 5 $27.75 Down $0.375 52-week High Low $28.375 $17.75 All figures except EPS and share prices in millions The company has been coming off of a strong 1995, when its products were hot, particularly everlasting Barbie, said Sean McGowan Sean Michael McGowan (born December 21st, 1980) is one of the few American writers to publish photographic novels (similar to photo novels in that they are both literary and graphic, yet distinguished from them by using photography instead of illustrations). , senior vice president of the New York-based securities brokerage firm Gerard Klauer Mattison. This year's toy lineup looks to have great potential as well, Leibowitz said. Toy display At the American International Toy Fair The American International Toy Fair (the trademarked name uses all capitals for TOY FAIR) is one of a few major toy industry trade shows held around the world. It is held annually in late winter (mid February) in New York City's Toy District (Broadway and 5th Avenue in the mid held in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. Feb. 12-16, Mattel introduced its new CD-ROM CD-ROM: see compact disc. CD-ROM in full compact disc read-only memory Type of computer storage medium that is read optically (e.g., by a laser). software based on its toys, such as Barbie and Hot Wheels Hot Wheels is a brand of die cast toy car, introduced by American toymaker Mattel in 1968. It was the primary competitor of Johnny Lightning and Matchbox until 1996, when Mattel acquired rights to the Matchbox brand from Tyco. . It also introduced toys licensed for Walt Disney Noun 1. Walt Disney - United States film maker who pioneered animated cartoons and created such characters as Mickey Mouse and Donald Duck; founded Disneyland (1901-1966) Disney, Walter Elias Disney Co.'s upcoming movie "Hunchback hunchback, abnormal outward curvature of the spine in the thoracic region. It is also known as kyphosis and humpback, and in its severe form a noticeable hump is evident on the back. of Notre Dame Notre Dame IPA: [nɔtʁ dam] is French for Our Lady, referring to the Virgin Mary. In the United States of America, Notre Dame ." These new creations generated plenty of interest from buyers, Leibowitz said. In addition, Mattel announced a 5-for-4 stock split Feb. 7. Shareholders received one additional share of common stock for every four shares they held as of Feb. 16. Since each shareholder receives a 6 cents-per-share dividend every quarter, the split increases the dividend because now the investors have more shares, said company spokesman Glenn Bozarth. The split, effective March 4, essentially lowered each share's price by about 18 percent, Bozarth said. The stock closed at $28.125 a share that first day. The company further announced it plans to buy back an average of 7 million shares annually, according to the company statement. That should further boost earnings per share. Meanwhile, Mattel's unsuccessful attempt to bring off a friendly merger with Hasbro Inc. hasn't thwarted the company at all, Leibowitz said. Rumors are that Mattel is eyeing other acquisitions, he said. |
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