Toy manufacturing and entertainment company (NASDAQ:MAT) will be reporting results this Tuesday after the bell. Here’s what you need to know.
Mattel beat analysts’ revenue expectations last quarter, reporting revenues of $862.2 million, up 4.3% year on year. It was a strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and EPS in line with analysts’ 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 grow 7.9% year on year, a reversal from the 5.7% decrease 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 will 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 Q2 results, giving us a hint as to what we can expect. Hasbro delivered year-on-year revenue growth of 16.2%, beating analysts’ expectations by 6.6%, and AMC Entertainment reported revenues up 14.2%, topping estimates by 8.7%. Hasbro traded up 9.1% following the results while AMC Entertainment was also up 13.4%.
Read our full analysis of Hasbro’s results here and AMC Entertainment’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer discretionary stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.4% on average over the last month. Mattel is up 15.9% during the same time and is heading into earnings with an average analyst price target of $18.31 (compared to the current share price of $15.09).
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