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What to Expect from Mattel (MAT) this Earnings Season?
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Leading toy-maker Mattel, Inc. (MAT - Free Report) is scheduled to report first-quarter 2017 numbers on Apr 20, after market close.
Last quarter, Mattel posted a negative earnings surprise of 26.76%. In fact, the trailing four-quarter average earnings surprise stands at a negative 5.65%.
Let’s see how things are shaping up for this announcement.
Mattel’s increased focus on improving its point of sale through launch of new products along with strategic initiatives like entering new categories and strengthening the Girls’ portfolio are expected to bolster first-quarter results. Also, solid performance in some of the international markets, particularly China, should boost sales.
Notably, the company’s core brands like Hot Wheels, Thomas, Fisher-Price and MEGA Brands have been doing well. We anticipate this trend to continue in the to-be-reported quarter. Meanwhile, efforts undertaken to bring back its flagship brand – Barbie – to its former position should continue yielding results in Q1 as well. In fact, Mattel had witnessed a strong uptick in Barbie sales in the last three quarters.
Efforts to achieve cumulative cost savings and enhanced margins should further boost the quarter’s performance.
However, challenging macroeconomic environment and sluggish performance at Mattel Girls & Boys Brands might limit revenue growth in the first quarter.
In addition, U.S. toy category slowdown, unfavorable foreign exchange translation along with costs related to sales-boosting initiatives may further hamper the quarter’s results.
Earnings Whispers
Our proven model does not conclusively show that Mattel is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Mattel has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 17 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mattel has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows they also have the right combination of elements to post an earnings beat this quarter:
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank #3.
The Walt Disney Company (DIS - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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What to Expect from Mattel (MAT) this Earnings Season?
Leading toy-maker Mattel, Inc. (MAT - Free Report) is scheduled to report first-quarter 2017 numbers on Apr 20, after market close.
Last quarter, Mattel posted a negative earnings surprise of 26.76%. In fact, the trailing four-quarter average earnings surprise stands at a negative 5.65%.
Let’s see how things are shaping up for this announcement.
Mattel, Inc. Price and EPS Surprise
Mattel, Inc. Price and EPS Surprise | Mattel, Inc. Quote
Factors Likely to Influence Q1 Results
Mattel’s increased focus on improving its point of sale through launch of new products along with strategic initiatives like entering new categories and strengthening the Girls’ portfolio are expected to bolster first-quarter results. Also, solid performance in some of the international markets, particularly China, should boost sales.
Notably, the company’s core brands like Hot Wheels, Thomas, Fisher-Price and MEGA Brands have been doing well. We anticipate this trend to continue in the to-be-reported quarter. Meanwhile, efforts undertaken to bring back its flagship brand – Barbie – to its former position should continue yielding results in Q1 as well. In fact, Mattel had witnessed a strong uptick in Barbie sales in the last three quarters.
Efforts to achieve cumulative cost savings and enhanced margins should further boost the quarter’s performance.
However, challenging macroeconomic environment and sluggish performance at Mattel Girls & Boys Brands might limit revenue growth in the first quarter.
In addition, U.S. toy category slowdown, unfavorable foreign exchange translation along with costs related to sales-boosting initiatives may further hamper the quarter’s results.
Earnings Whispers
Our proven model does not conclusively show that Mattel is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. Unfortunately, that is not the case here as elaborated below.
Zacks ESP: Mattel has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 17 cents per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Mattel has a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s 0.00% ESP makes surprise prediction difficult.
Notably, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies to consider as our model shows they also have the right combination of elements to post an earnings beat this quarter:
Wynn Resorts, Limited (WYNN - Free Report) has an Earnings ESP of +5.41% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
MGM Resorts International (MGM - Free Report) has an Earnings ESP of +11.54% and a Zacks Rank #3.
The Walt Disney Company (DIS - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>