A Preview Of Mattel's Earnings

Mattel MAT is set to give its latest quarterly earnings report on Wednesday, 2024-10-23. Here's what investors need to know before the announcement.

Analysts estimate that Mattel will report an earnings per share (EPS) of $0.95.

Mattel bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.02, leading to a 9.8% increase in the share price the following trading session.

Here's a look at Mattel's past performance and the resulting price change:

Stock Performance

Shares of Mattel were trading at $18.42 as of October 21. Over the last 52-week period, shares are down 8.75%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Opinions on Mattel

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Mattel.

Analysts have provided Mattel with 2 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $21.5, suggesting a potential 16.72% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Brunswick, Polaris and Acushnet Hldgs, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for Brunswick, with an average 1-year price target of $90.5, indicating a potential 391.31% upside.
• Analysts currently favor an Neutral trajectory for Polaris, with an average 1-year price target of $83.25, suggesting a potential 351.95% upside.
• Acushnet Hldgs is maintaining an Neutral status according to analysts, with an average 1-year price target of $72.0, indicating a potential 290.88% upside.

Peer Metrics Summary

The peer analysis summary offers a detailed examination of key metrics for Brunswick, Polaris and Acushnet Hldgs, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Mattel ranks at the bottom for Revenue Growth among its peers. It also ranks at the bottom for Gross Profit. However, it ranks in the middle for Return on Equity.

Unveiling the Story Behind Mattel

Mattel markets toy products that are sold to its wholesale customers and direct to retail consumers. The company offers products for children and families, including toys for infants and preschoolers, girls and boys, youth electronics, hand-held and other games, puzzles, educational toys, media-driven products, and plush and fashion-related toys. Mattel's owned portfolio includes Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, and American Girl. In addition, it currently manufactures toy products for its segments both internally and externally (through manufacturing partners). More than 50% of its net sales are generated from North America, with the remainder stemming from international markets.

Breaking Down Mattel's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Decline in Revenue: Over the 3 months period, Mattel faced challenges, resulting in a decline of approximately -0.68% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Mattel's net margin is impressive, surpassing industry averages. With a net margin of 5.27%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.84%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Mattel's ROA stands out, surpassing industry averages. With an impressive ROA of 0.95%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.34, caution is advised due to increased financial risk.

To track all earnings releases for Mattel visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.