Toy manufacturing and entertainment company (NASDAQ: MAT) will be reporting results this Wednesday afternoon. Here’s what you need to know.
Mattel missed analysts’ revenue expectations last quarter, reporting revenues of $1.77 billion, up 7.3% year on year. It was a disappointing quarter for the company, with full-year EPS guidance missing analysts’ expectations and a significant miss of analysts’ adjusted operating income estimates.
Is Mattel a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Mattel’s revenue to decline 2.1% year on year, a reversal from the 2.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mattel has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Mattel’s peers in the consumer discretionary segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Monarch delivered year-on-year revenue growth of 8.9%, beating analysts’ expectations by 5.2%, and CBRE reported revenues up 18.2%, topping estimates by 2.5%. Monarch traded up 15.9% following the results while CBRE was down 3.4%.
Read our full analysis of Monarch’s results here and CBRE’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 12.8% on average over the last month. Mattel is up 4.8% during the same time and is heading into earnings with an average analyst price target of $19.14 (compared to the current share price of $14.84).
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