Back to top

Image: Bigstock

Robust North America Sales to Aid Mattel's (MAT) Q1 Earnings

Read MoreHide Full Article

Mattel, Inc. (MAT - Free Report) is scheduled to report first-quarter 2021 results on Apr 22, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 66.7%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter loss is pegged at 33 cents, compared with a loss of 56 cents reported in the prior-year quarter. Over the past seven days, the estimates have remained stable. The consensus mark for revenues stands at $683 million, suggesting growth of 14.5% from prior-year quarter.

Factors to Note

The company’s first-quarter performance might have benefited from robust performance of Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels. The company has also been gaining from sales growth in North America, digital efforts, and increased focus on structural simplification.

The Zacks Consensus Estimate for revenues for Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels are pegged at $178 million, $157 million and $329 million, suggesting improvements of 20.3%, 21.7% and 11.3%, respectively, from the prior-year quarter.

Meanwhile, robust performance of Dolls (including Barbie), Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends), Action Figures, Building Sets, Games, and Other might have aided company’s sales in North America. The Zacks Consensus Estimate for North America revenues stands at $360 million, suggesting growth of 17.6% year over year.

Cost saving initiatives may have contributed to first-quarter margins. In first, second, third and fourth-quarter of 2020, adjusted gross margin expanded 450, 410, 410 and 250 basis points (year over year) to 43.5%, 44%, 51% and 51.4% respectively, on the back of savings from the Structural Simplification and capital light program.

Mattel, Inc. Price and EPS Surprise Mattel, Inc. Price and EPS Surprise

Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t predict 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 0.00% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Boyd Gaming Corporation (BYD - Free Report) has a Zacks Rank #3 and an Earnings ESP of +7.42%.

Choice Hotels International, Inc. (CHH - Free Report) has a Zacks Rank #3 and an Earnings ESP of +2.75%.

Caesars Entertainment, Inc. (CZR - Free Report) has a Zacks Rank #3 and an Earnings ESP of +9.32%.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>   

Published in