NEW YORK (AP) -- Analysts expect Mattel's strong brands like Monster High, American Girl and movie-tie ins like "Planes" will help its third-quarter results overcome the weak toy market. The company reports results for the July-September period before the market opens on Wednesday.
WHAT TO WATCH FOR: Toy sales have been weak in North America, Europe and Australia, due to a weak video game market, an uncertain economy and continued popularity of electronic gadgets like smartphones and tablets. But Mattel, the largest U.S. toy maker, has done better than its competitors.
Analysts will be looking to see if Mattel's popular Monster High dolls are showing signs of peaking, said BMO Capital Markets analyst Gerrick Johnson.
Johnson expects Barbie and Hot Wheels sales will be sluggish. He has a "Market perform" rating on the stock.
WHY IT MATTERS: Toys, unlike food and shelter, are not necessities, so how well they are selling indicates how confident consumers feel about the state of the economy and their finances.
WHAT'S EXPECTED: Analysts expect net income of $1.11 per share on revenue of $2.17 billion, according to FactSet.
LAST YEAR'S QUARTER: The El Segundo, Calif.-based company earned $1.04 per share on revenue of $2.08 billion.