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Mattel (MAT) Announces Partnership With Disney, Stock up
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Mattel, Inc. (MAT - Free Report) recently entered into a multi-year global licensing agreement with Disney to develop and market the latter’s Princess and Frozen branded line of products. The deal marks the reunion of Disney characters with Mattel after a gap of nearly 7 years. Following the announcement, shares of the company moved up 4.3% during trading hours on Jan 26.
Built upon its existing licensing arrangement with Disney for Pixar Animation Studio’s Toy Story and Cars franchises as well as for Lightyear, the company anticipates launching the new products starting in 2023.
Per the agreement, Mattel will develop toy lines for Disney Consumer Products, Games and Publishing, including fashion dolls, small dolls and figures. It will design dolls based on the characters from Disney Princess including Aladdin, Beauty and the Beast, Brave, Cinderella, The Little Mermaid, Mulan, Pocahontas, The Princess and the Frog, Sleeping Beauty, Snow White and the Seven Dwarfs, Tangled, Disney Frozen, The Little Mermaid Live Action, Moana D+ Series, Tiana D+ Series, Aladdin Live Action, Beauty & the Beast Live Action, Cinderella Live Action and Mulan Live Action.
In this regard, Richard Dickson, president and chief operating officer, Mattel, stated, “As the worldwide leader in dolls, we look forward to bringing our unique Mattel Playbook approach to brand management, product and marketing expertise, and unrelenting attention to detail and quality to create innovative and inspiring lines for these iconic stories and characters.”
Price Performance
Image Source: Zacks Investment Research
Shares of the company have gained 13% in the past year against the industry’s 11.2% decline. The outperformance was primarily attributed to product innovation, marketing partnerships, promotional initiatives and digital efforts. The company’s initiative to simplify its organization structure as well as optimize processes and supply chain to generate savings across operations bodes well. Also, focus on new content and digital engagement is likely to drive growth in the upcoming quarters. However, coronavirus-related woes persist. Dismal store traffic, stemming from travel and other local restrictions, is a concern. The company is actively monitoring the global situation and the impact of the same on its financial condition, liquidity, operations, suppliers, industry and workforce. Earnings estimates for 2022 have remained unchanged in the past 30 days, limiting the upside potential of the stock.
Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 41.6%, on average. Shares of Crocs have increased 44% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and earnings per share (EPS) indicates a rise of 48.8% and 25.8%, respectively, from the year-ago period’s levels.
RCI Hospitality flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 66.4% in the past year.
The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from the year-ago period’s levels.
Guess carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 97%, on average. Shares of Guess have increased 2.5% in the past three months.
The Zacks Consensus Estimate for GES’s 2022 sales and EPS suggests growth of 38.6% and 4,342.9%, respectively, from the year-ago period’s levels.
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Mattel (MAT) Announces Partnership With Disney, Stock up
Mattel, Inc. (MAT - Free Report) recently entered into a multi-year global licensing agreement with Disney to develop and market the latter’s Princess and Frozen branded line of products. The deal marks the reunion of Disney characters with Mattel after a gap of nearly 7 years. Following the announcement, shares of the company moved up 4.3% during trading hours on Jan 26.
Built upon its existing licensing arrangement with Disney for Pixar Animation Studio’s Toy Story and Cars franchises as well as for Lightyear, the company anticipates launching the new products starting in 2023.
Per the agreement, Mattel will develop toy lines for Disney Consumer Products, Games and Publishing, including fashion dolls, small dolls and figures. It will design dolls based on the characters from Disney Princess including Aladdin, Beauty and the Beast, Brave, Cinderella, The Little Mermaid, Mulan, Pocahontas, The Princess and the Frog, Sleeping Beauty, Snow White and the Seven Dwarfs, Tangled, Disney Frozen, The Little Mermaid Live Action, Moana D+ Series, Tiana D+ Series, Aladdin Live Action, Beauty & the Beast Live Action, Cinderella Live Action and Mulan Live Action.
In this regard, Richard Dickson, president and chief operating officer, Mattel, stated, “As the worldwide leader in dolls, we look forward to bringing our unique Mattel Playbook approach to brand management, product and marketing expertise, and unrelenting attention to detail and quality to create innovative and inspiring lines for these iconic stories and characters.”
Price Performance
Shares of the company have gained 13% in the past year against the industry’s 11.2% decline. The outperformance was primarily attributed to product innovation, marketing partnerships, promotional initiatives and digital efforts. The company’s initiative to simplify its organization structure as well as optimize processes and supply chain to generate savings across operations bodes well. Also, focus on new content and digital engagement is likely to drive growth in the upcoming quarters. However, coronavirus-related woes persist. Dismal store traffic, stemming from travel and other local restrictions, is a concern. The company is actively monitoring the global situation and the impact of the same on its financial condition, liquidity, operations, suppliers, industry and workforce. Earnings estimates for 2022 have remained unchanged in the past 30 days, limiting the upside potential of the stock.
Zacks Rank & Key Picks
Mattel currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the Zacks Consumer Discretionary sector are Crocs, Inc. (CROX - Free Report) , RCI Hospitality Holdings, Inc. (RICK - Free Report) and Guess, Inc. (GES - Free Report) .
Crocs flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 41.6%, on average. Shares of Crocs have increased 44% in the past year.
The Zacks Consensus Estimate for CROX’s 2022 sales and earnings per share (EPS) indicates a rise of 48.8% and 25.8%, respectively, from the year-ago period’s levels.
RCI Hospitality flaunts a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 67.7%, on average. Shares of RCI Hospitality have surged 66.4% in the past year.
The Zacks Consensus Estimate for RICK’s 2022 sales and EPS suggests growth of 34.9% and 22.1%, respectively, from the year-ago period’s levels.
Guess carries a Zacks Rank #2. The company has a trailing four-quarter earnings surprise of 97%, on average. Shares of Guess have increased 2.5% in the past three months.
The Zacks Consensus Estimate for GES’s 2022 sales and EPS suggests growth of 38.6% and 4,342.9%, respectively, from the year-ago period’s levels.