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Mattel (MAT) to Post Q2 Earnings: What's in the Offing?

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Mattel, Inc. (MAT - Free Report) is scheduled to report second-quarter 2021 results on Jul 27, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 70.6%.

How are Estimates Placed?

The Zacks Consensus Estimate for second-quarter bottom line is pegged at a loss of 3 cents per share, indicating improvement of 88.5% from a loss of 26 cents reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $902.1 million, which suggests growth of 23.2% from the prior-year quarter’s figure.

Mattel, Inc. Price and EPS Surprise

 

Mattel, Inc. Price and EPS Surprise

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

 

Let's take a look at how things have shaped up in the quarter.

Factors to Note

Mattel’s second-quarter performance is likely to benefit from robust performance of Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels. Moreover, progress with reference to capturing the full value of IP, through franchise management, online retail and e-commerce, is likely to get reflected in second-quarter top line.

The Zacks Consensus Estimate for revenues for Power Brands Barbie, Fisher-Price and Thomas & Friends Brand, and Hot Wheels are pegged at $247 million, $212 million and $178 million, suggesting improvements of 24.1%, 20.5% and 29.9%, respectively, year over year.

Meanwhile, the company emphasizes on cost savings and productivity initiatives that are likely to support growth and rebuild margins in the second quarter. This along with focus on initiatives like product innovation, demand creation (in collaboration with retail partners), promotional strategies and digital efforts are likely to drive the company’s second-quarter results. Also, benefits from stimulus funding are likely to get reflected in second-quarter performance.

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 odds of an earnings beat.

Earnings ESP: Mattel has an Earnings ESP of +41.18%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #2. 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 also have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. (GDEN - Free Report) sports a Zacks Rank #1 and has an Earnings ESP of +5.22%.

Churchill Downs Incorporated (CHDN - Free Report) has a Zacks Rank #2 and an Earnings ESP of +7.42%.

Caesars Entertainment, Inc. (CZR - Free Report) has a Zacks Rank #2 and an Earnings ESP of +265.6%.