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Mattel (MAT) Gears Up for Q2 Earnings: What's in Store?

Mattel, Inc. MAT is scheduled to report second-quarter 2022 results on Jul 21, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 260%.

Q2 Estimates

The Zacks Consensus Estimate for second-quarter earnings is pegged at 5 cents, compared with 3 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 $1.1 billion, suggesting growth of 7.6% from the prior-year quarter.

Factors to Note

The company’s second-quarter performance might have benefited from robust North America sales and strong demand for its products. The Zacks Consensus Estimate for North America revenues stands at $651 million, indicating an improvement of 8.9% year over year. Increase in sales of Action Figures, Building Sets, Games, and Other (including Jurassic World, Lightyear, and MEGA), Vehicles (including Hot Wheels), Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends), and Dolls (including Barbie and Polly Pocket) may have contributed to North America revenues.

The Zacks Consensus Estimate for revenues for Power Brands Barbie and Hot Wheels is pegged at $306 million and $241 million, suggesting improvements of 5.2% and 6.2%, respectively, from the prior-year quarter. The consensus mark for worldwide gross revenues for Thomas & Friends Brand stands at $218 million, indicating growth of 4.8% year over year. Meanwhile, the consensus mark for gross revenues for Vehicles is pegged at $266 million, flat year over year.

The company has been benefiting from robust e-commerce growth, a highly-efficient supply chain and strong demand for its products. This, along with initiatives toward capturing the full value of its IP and transforming itself into a high-performing toy company, bodes well.

However, 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.

Mattel, Inc. Price and EPS Surprise

Mattel, Inc. Price and EPS Surprise
Mattel, Inc. Price and EPS Surprise

Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote

What the Zacks Model Unveils

Our proven model doesn’t 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 -25.93% 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:

MGM Resorts International MGM has an Earnings ESP of +60.20% and a Zacks Rank #3.

Shares of MGM Resorts have declined 25.9% in the past year. MGM’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 212.5%.

Marriott International, Inc. MAR has an Earnings ESP of +10.12% and a Zacks Rank #1.

Shares of Marriott have increased 0.9% in the past year. MAR’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 36.2%.

Hilton Worldwide Holdings Inc. HLT has an Earnings ESP of +13.39% and a Zacks Rank #3.

Shares of Hilton have declined 7.2% in the past year. HLT’s earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 20.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Marriott International, Inc. (MAR) : Free Stock Analysis Report
 
Mattel, Inc. (MAT) : Free Stock Analysis Report
 
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Hilton Worldwide Holdings Inc. (HLT) : Free Stock Analysis Report
 
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