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Mattel's (MAT) to Post Q4 Earnings: Power Brands Hold Key
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Mattel, Inc. (MAT - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 9, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 150%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 24 cents, indicating an improvement of 118.2% from the prior-year quarter. Over the past seven days, the estimates have remained stable. The consensus mark for revenues stands at $1.58 billion, suggesting growth of 7.4% from prior-year quarter.
Factors to Note
The company’s fourth-quarter results are likely to reflect the impact of strong product line-up, which includes core brands, licensed brands and lucrative product associations. Moreover, initiatives like product innovation, promotional strategies, digital efforts, and increased focus on structural simplification might have benefited the to-be-reported quarter’s performance.
Moreover, robust performance of Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels is likely to get reflected in the fourth-quarter results. The Zacks Consensus Estimate for revenues for Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels are pegged at $468 million, $345 million and $329 million, suggesting improvements of of 17.9%, 1.2% and 7.2%, respectively, year over year. Moreover, softness in North America sales might have persisted in the quarter to be reported.
Meanwhile, robust performance of Dolls, Action Figures, Building Sets, Games, and Other (comprising Star Wars: The Child plush, card games, including UNO, Jurassic World, and Pictionary) are likely to have driven company’s sales in North America.
Cost saving initiatives may have contributed to fourth-quarter margins. In first, second and third-quarter 2020, adjusted gross margin expanded 450, 410 and 410 basis points to 43.5%, 44% and 51%, respectively. This is likely to have been driven by savings from the Structural Simplification program and capital light, and the trend might have continued in the to-be-reported quarter.
Our proven model predicts an earnings beat for Mattel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
MGM Resorts International (MGM - Free Report) has a Zacks Rank #3 and an Earnings ESP of +3.54%.
Corsair Gaming, Inc. (CRSR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +17.24%.
Guess’, Inc. (GES - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.91%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Mattel's (MAT) to Post Q4 Earnings: Power Brands Hold Key
Mattel, Inc. (MAT - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 9, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 150%.
Q4 Estimates
The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 24 cents, indicating an improvement of 118.2% from the prior-year quarter. Over the past seven days, the estimates have remained stable. The consensus mark for revenues stands at $1.58 billion, suggesting growth of 7.4% from prior-year quarter.
Factors to Note
The company’s fourth-quarter results are likely to reflect the impact of strong product line-up, which includes core brands, licensed brands and lucrative product associations. Moreover, initiatives like product innovation, promotional strategies, digital efforts, and increased focus on structural simplification might have benefited the to-be-reported quarter’s performance.
Moreover, robust performance of Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels is likely to get reflected in the fourth-quarter results. The Zacks Consensus Estimate for revenues for Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels are pegged at $468 million, $345 million and $329 million, suggesting improvements of of 17.9%, 1.2% and 7.2%, respectively, year over year. Moreover, softness in North America sales might have persisted in the quarter to be reported.
Meanwhile, robust performance of Dolls, Action Figures, Building Sets, Games, and Other (comprising Star Wars: The Child plush, card games, including UNO, Jurassic World, and Pictionary) are likely to have driven company’s sales in North America.
Cost saving initiatives may have contributed to fourth-quarter margins. In first, second and third-quarter 2020, adjusted gross margin expanded 450, 410 and 410 basis points to 43.5%, 44% and 51%, respectively. This is likely to have been driven by savings from the Structural Simplification program and capital light, and the trend might have continued in the to-be-reported quarter.
Mattel, Inc. Price and EPS Surprise
Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Mattel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Mattel has an Earnings ESP of +9.29% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks Poised to Beat Earnings Estimates
Here are some other stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
MGM Resorts International (MGM - Free Report) has a Zacks Rank #3 and an Earnings ESP of +3.54%.
Corsair Gaming, Inc. (CRSR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +17.24%.
Guess’, Inc. (GES - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.91%.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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