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Mattel (MAT) to Post Q4 Earnings: Here's What to Expect
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Mattel, Inc. (MAT - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7, 2024, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 24.1%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 32 cents in the past seven days. The estimated figure indicates a 77.8% increase from 18 cents reported in the year-ago quarter.
For revenues, the consensus mark is pegged at nearly $1.68 billion. The metric suggests an improvement of 19.8% from the year-ago quarter’s figure.
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors to Note
Mattel's fourth-quarter earnings and revenues are expected to increase year over year, driven by a strong product line-up featuring core and licensed brands and lucrative product associations. Also, its emphasis on the IP-driven toy business and the expansion of entertainment offerings are expected to have aided the company’s performance in the to-be-reported quarter.
The company's performance in the to-be-reported quarter is likely have been boosted by strong contributions from its North America and international segments. Our model predicts total North America and international revenues to rise 19.7% and 14.3% year over year to $918.1 million and $725.7 million, respectively.
We expect North America gross billings to increase 19.7% year over year in the to-be-reported quarter to $839.7 million. Our model predicts international gross billings to increase 15.2% year over year in the to-be-reported quarter to $857.5 million.
The bottom line is likely to have been impacted by higher input cost inflation, unfavorable fixed cost absorption and other supply chain costs. Also, higher severance and restructuring expenses, incentive compensation and pay increases are added concerns. For the quarter to be reported, we expect adjusted other selling and administrative expenses to increase 16.5% year over year to $328.2 million.
However, its ongoing cost-saving program is expected to have partially offset the adverse effects of these headwinds. This includes simplifying its organizational structure and optimizing processes and the supply chain to generate savings across operations. For the fourth quarter, our model predicts adjusted gross margin to expand 360 basis points year over year to 46.6%.
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 odds of an earnings beat. But that's not the case here.
Earnings ESP: Mattel has an Earnings ESP of -27.56%. 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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +15.51% and a Zacks Rank #3.
Shares of MGM Resorts have increased 8.8% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
Shares of Boyd Gaming have declined 1.3% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Academy Sports and Outdoors, Inc. (ASO - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3.
Shares of Academy Sports have increased 5.3% in the past year. ASO’s earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 4.7%, on average.
Image: Bigstock
Mattel (MAT) to Post Q4 Earnings: Here's What to Expect
Mattel, Inc. (MAT - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 7, 2024, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 24.1%.
The Trend in Estimate Revision
For the quarter to be reported, the Zacks Consensus Estimate for earnings per share has remained unchanged at 32 cents in the past seven days. The estimated figure indicates a 77.8% increase from 18 cents reported in the year-ago quarter.
Mattel, Inc. Price and EPS Surprise
Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote
For revenues, the consensus mark is pegged at nearly $1.68 billion. The metric suggests an improvement of 19.8% from the year-ago quarter’s figure.
Let’s discuss the factors that are likely to be reflected in the quarter to be reported.
Factors to Note
Mattel's fourth-quarter earnings and revenues are expected to increase year over year, driven by a strong product line-up featuring core and licensed brands and lucrative product associations. Also, its emphasis on the IP-driven toy business and the expansion of entertainment offerings are expected to have aided the company’s performance in the to-be-reported quarter.
The company's performance in the to-be-reported quarter is likely have been boosted by strong contributions from its North America and international segments. Our model predicts total North America and international revenues to rise 19.7% and 14.3% year over year to $918.1 million and $725.7 million, respectively.
We expect North America gross billings to increase 19.7% year over year in the to-be-reported quarter to $839.7 million. Our model predicts international gross billings to increase 15.2% year over year in the to-be-reported quarter to $857.5 million.
The bottom line is likely to have been impacted by higher input cost inflation, unfavorable fixed cost absorption and other supply chain costs. Also, higher severance and restructuring expenses, incentive compensation and pay increases are added concerns. For the quarter to be reported, we expect adjusted other selling and administrative expenses to increase 16.5% year over year to $328.2 million.
However, its ongoing cost-saving program is expected to have partially offset the adverse effects of these headwinds. This includes simplifying its organizational structure and optimizing processes and the supply chain to generate savings across operations. For the fourth quarter, our model predicts adjusted gross margin to expand 360 basis points year over year to 46.6%.
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 odds of an earnings beat. But that's not the case here.
Earnings ESP: Mattel has an Earnings ESP of -27.56%. 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 #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 sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +15.51% and a Zacks Rank #3.
Shares of MGM Resorts have increased 8.8% in the past year. MGM’s earnings beat estimates in each of the trailing four quarters, the average surprise being 292.7%.
Boyd Gaming Corporation (BYD - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #3.
Shares of Boyd Gaming have declined 1.3% in the past year. BYD’s earnings beat estimates in three of the trailing four quarters and missed once, the average surprise being 6.9%.
Academy Sports and Outdoors, Inc. (ASO - Free Report) has an Earnings ESP of +1.41% and a Zacks Rank #3.
Shares of Academy Sports have increased 5.3% in the past year. ASO’s earnings beat estimates in two of the trailing four quarters and missed twice, the negative surprise being 4.7%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.