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Mattel (MAT) Gears Up for Q3 Earnings: What's in the Offing?
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Mattel, Inc. (MAT - Free Report) is scheduled to report its third-quarter 2022 results on Oct 25, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 260%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings is pegged at 73 cents compared with 84 cents reported in the prior-year quarter. In the past seven days, earnings estimates for the current quarter have witnessed downward revisions by a penny. The consensus mark for revenues stands at $1.75 billion, suggesting a decline of 0.8% from the prior-year quarter.
Factors to Note
The company’s third-quarter performance might have been hurt by a decline in sales of Power Brands Barbie. The Zacks Consensus Estimate for revenues for Power Brands Barbie is pegged at $545 million, suggesting an improvement of 1.8% from the prior-year quarter. Cost inflation may have negatively impacted the company’s operations due to a rise in raw materials and ocean freight, which in turn may have weighed on the company’s bottom line in the quarter to be reported.
However, robust North American sales and strong demand for its products are likely to aid the company’s results. The Zacks Consensus Estimate for North America revenues stands at $1,128 million, indicating an improvement of 1.6% year over year. Increase in the sales of Action Figures, Building Sets, Games, and Other (including Jurassic World and Lightyear), Vehicles (including Hot Wheels), Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends) and Dolls (including Polly Pocket and Barbie) may have contributed to North America revenues.
The consensus mark for worldwide gross revenues for Thomas & Friends Brand stands at $389 million, indicating growth of 1.3% year over year. On the other hand, the consensus estimate for Hot Wheels is pegged at $341 million, up 3.3% year over year.
Our proven model doesn’t conclusively 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.
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:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have declined 1.2% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
JAKKS Pacific, Inc. (JAKK - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3.
Shares of JAKKS Pacific have jumped 84.3% in the past year. JAKK’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 155%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 19.5% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Image: Bigstock
Mattel (MAT) Gears Up for Q3 Earnings: What's in the Offing?
Mattel, Inc. (MAT - Free Report) is scheduled to report its third-quarter 2022 results on Oct 25, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 260%.
Q3 Estimates
The Zacks Consensus Estimate for third-quarter earnings is pegged at 73 cents compared with 84 cents reported in the prior-year quarter. In the past seven days, earnings estimates for the current quarter have witnessed downward revisions by a penny. The consensus mark for revenues stands at $1.75 billion, suggesting a decline of 0.8% from the prior-year quarter.
Factors to Note
The company’s third-quarter performance might have been hurt by a decline in sales of Power Brands Barbie. The Zacks Consensus Estimate for revenues for Power Brands Barbie is pegged at $545 million, suggesting an improvement of 1.8% from the prior-year quarter. Cost inflation may have negatively impacted the company’s operations due to a rise in raw materials and ocean freight, which in turn may have weighed on the company’s bottom line in the quarter to be reported.
However, robust North American sales and strong demand for its products are likely to aid the company’s results. The Zacks Consensus Estimate for North America revenues stands at $1,128 million, indicating an improvement of 1.6% year over year. Increase in the sales of Action Figures, Building Sets, Games, and Other (including Jurassic World and Lightyear), Vehicles (including Hot Wheels), Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends) and Dolls (including Polly Pocket and Barbie) may have contributed to North America revenues.
The consensus mark for worldwide gross revenues for Thomas & Friends Brand stands at $389 million, indicating growth of 1.3% year over year. On the other hand, the consensus estimate for Hot Wheels is pegged at $341 million, up 3.3% year over year.
Mattel, Inc. Price and EPS Surprise
Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote
What the Zacks Model Unveils
Our proven model doesn’t conclusively 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 -1.86% and a Zacks Rank #3. 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:
RCI Hospitality Holdings, Inc. (RICK - Free Report) has an Earnings ESP of +4.15% and a Zacks Rank #2.
Shares of RCI Hospitality have declined 1.2% in the past year. RICK’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.
JAKKS Pacific, Inc. (JAKK - Free Report) has an Earnings ESP of +3.25% and a Zacks Rank #3.
Shares of JAKKS Pacific have jumped 84.3% in the past year. JAKK’s earnings surpassed the consensus mark in all of the trailing four quarters, the average surprise being 155%.
Cedar Fair, L.P. (FUN - Free Report) has an Earnings ESP of +2.38% and a Zacks Rank #3.
Shares of Cedar Fair have declined 19.5% in the past year. FUN’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.