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Toy manufacturing and entertainment company (NASDAQ:MAT) will be reporting results tomorrow after market hours. Here’s what to expect.
Mattel beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.65 billion, up 1.6% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Mattel a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Mattel’s revenue to decline 2.2% year on year to $791.5 million, a deceleration from its flat revenue in the same quarter last year. Adjusted loss is expected to come in at -$0.10 per share.
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 four 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. Hasbro delivered year-on-year revenue growth of 17.1%, beating analysts’ expectations by 14.8%, and Nike reported a revenue decline of 9.3%, topping estimates by 2.3%. Hasbro traded up 15.9% following the results while Nike was down 5.4%.
Read our full analysis of Hasbro’s results here and Nike’s results here.
There has been positive sentiment among investors in the consumer discretionary segment, with share prices up 8.8% on average over the last month. Mattel is up 1.5% during the same time and is heading into earnings with an average analyst price target of $23.81 (compared to the current share price of $16.02).
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