Back to top

Analyst Blog

Mattel, Inc. (MAT - Analyst Report) extended its multi-year agreement with Warner Bros. Consumer Products which licenses the rights for all the intellectual properties in Warner Bros. Entertainment’s film and television network. Warner Bros. Entertainment is an American producer of film, television and music entertainment and is a subsidiary of one of the largest media and entertainment conglomerates, Time Warner Inc. (TWX - Analyst Report).

The extension of the 15-year deal grants Mattel the permission to broaden its toy offerings based on popular DC Comics characters such as Batman and Superman. Under the deal, Mattel also secured the rights to produce toys for upcoming DC Comics films, animation and television projects. This deal will enable Mattel to manufacture toys across all its core brands including Hot Wheels, Matchbox, Barbie, Mattel Games and Fisher-Price.

The deal will script a turnaround for Mattel which has been suffering from declining sales due to weakness in its famous Barbie, Hot Wheels and Matchbox brands. In fact, the toy industry, of late, has been witnessing a general decline in demand as macroeconomic uncertainty and children’s shift toward videogames and personal electronic devices for entertainment have negatively impacted profit.

However, toys related to popular movie franchisees have generally been successful. In fact, Hasbro Inc. (HAS - Analyst Report) outshone other toymakers due to strategic agreement with The Walt Disney Company (DIS - Analyst Report) related to its Star Wars, Avengers and Spiderman brands. Mattel’s extension of the agreement with Warner Bros. will place it in a position to cash in on the immense demand for superhero toys, in our view.

Mattel, currently, carries a Zacks Rank #4 (Sell).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
HI CRUSH PA… HCLP 68.05 +4.74%
CTPARTNERS… CTP 12.91 +3.12%
QIHOO 360 T… QIHU 90.56 +3.11%
HOLLYSYS AU… HOLI 22.85 +2.97%
BONANZA CRE… BCEI 61.57 +2.94%