Mattel, Inc. Gears Up for Q3 2024 Earnings Report Amid Challenging Sales Environment
Mattel, Inc. (MAT) will release its earnings for the third quarter of 2024 on October 23, 2024, after trading closes. In the previous quarter, the company exceeded the Zacks Consensus Estimate by 18.8%.
Keep track of all upcoming earnings reports: View the Zacks Earnings Calendar.
Overview of Earnings Projections
The Zacks Consensus Estimate predicts earnings of 94 cents for the upcoming quarter, reflecting a decrease of 13% compared to last year. However, within the past week, there was a slight upward adjustment of 1 cent in earnings estimates.
Expected revenues stand at approximately $1.84 billion, indicating a 4.1% drop from the same quarter last year.
Mattel, Inc. Price and EPS Surprise
Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote
Key Factors Influencing Results
Mattel’s performance in Q3 2024 may be adversely affected by weaker sales in North America. The sales slump in categories such as Infant, Toddler, Preschool, Dolls, and Vehicles is expected to impact overall results. Additionally, the company faces a tough macroeconomic landscape.
The Zacks Consensus Estimate for worldwide gross billings from its top three brands—Barbie, Fisher-Price, and Hot Wheels—are anticipated at $524 million, $307 million, and $455 million, reflecting declines of 13.4%, 3.2%, and no change year over year, respectively.
Moreover, higher input costs, unfavorable fixed cost absorption, and escalated supply-chain expenses are projected to negatively affect the bottom line. Increased severance and restructuring costs, as well as higher wages and incentive compensation, also play a role. Nevertheless, cost-saving initiatives aimed at streamlining operations and managing the supply chain are expected to mitigate some of these headwinds.
Innovations in toy products and the expansion of entertainment offerings should contribute positively. Collaboration with retail partners to drive demand and enhance licensing partnerships could further support the company’s performance in this upcoming quarter.
Predictive Model Insights
Currently, our model does not reliably indicate an earnings beat for Mattel this quarter. A positive Earnings ESP alongside a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) typically increases the chance of an earnings outperformance, but this is not applicable in this case.
Earnings ESP: Currently, Mattel holds an Earnings ESP of -3.04%. Utilize our Earnings ESP Filter to discover stocks that could outperform based on our model.
Zacks Rank: Mattel has a Zacks Rank of #3.
Stocks to Watch for Earnings Beats
Consider these other stocks that possess favorable characteristics for exceeding earnings estimates:
AMC Entertainment Holdings, Inc. (AMC) has an Earnings ESP of +84.00% and a Zacks Rank of 2. Analysts predict a year-over-year earnings increase of 33.3% for this quarter. AMC has beaten earnings expectations in two out of the last four quarters, but missed twice, with an average negative surprise of 69.5%.
Boyd Gaming Corporation (BYD) presents an Earnings ESP of +17.79% and also holds a Zacks Rank of 2. Year-over-year earnings growth of 3.7% is expected for the forthcoming quarter. Boyd Gaming has reported earnings above expectations in two of its last four quarters, with an average surprise of 3.6%.
Marriott International, Inc. (MAR) shows an Earnings ESP of +1.57% and a Zacks Rank of 3. Year-over-year earnings growth of 9.5% is forecasted. Marriott has outperformed expectations in three of its last four quarters, with an average surprise of 16.9%.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
