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Mattel (MAT) to Post Q1 Earnings: Here's What to Expect

Mattel, Inc. MAT is scheduled to report first-quarter 2023 results on Apr 26, after the closing bell. In the last reported quarter, the company earnings missed the Zacks Consensus Estimate by 33.3%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for the first-quarter bottom line is pegged at a loss of 25 cents per share against adjusted earnings of 8 cents per share reported in the year-ago quarter.

For revenues, the consensus mark is pegged at $750 million, suggesting a decline of 28% from the year-ago quarter’s reported figure.

Factors at Play

Mattel’s first-quarter 2023 performance is likely to have been affected by a decline in North America gross billings. This decline is subject to the dismal performance of Infant, Toddler, and Preschool (including Fisher-Price and Thomas & Friends), Dolls (including Barbie), Action Figures, Building Sets, Games and Other. Also, the persisting coronavirus-related risks are expected to have caused supply-chain disruptions along with dismal store traffic on account of travel and other local restrictions like retail closures in China.

In first-quarter 2023, our model predicts North America and international revenues to decline 29.4% and 27.6%, year over year to $450.3 million and $292.4 million, respectively. On the other hand, North America gross billings are expected to decline 30.5% in the quarter to be reported.

Mattel, Inc. Price and EPS Surprise

Mattel, Inc. Price and EPS Surprise
Mattel, Inc. Price and EPS Surprise

Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote

The bottom line is likely to have been affected by inventory obsolescence expense, higher input cost inflation, unfavorable fixed cost absorption and higher royalty costs. These costs are expected to have negatively impacted the company’s operations and hurt margins in the to-be-reported quarter. For the first quarter, our model predicts adjusted gross margin to decline 450 points year over year.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Mattel this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP: Mattel has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported:

Wynn Resorts, Limited WYNN has an Earnings ESP of +111.38% and a Zacks Rank #2.

Shares of Wynn Resorts have surged 50.8% in the past year. WYNN’s earnings beat the estimates in two of the trailing four quarters and missed twice, the average surprise being 0.6%.

Hyatt Hotels Corporation H has an Earnings ESP of +56.57% and a Zacks Rank #3.

Shares of Hyatt Hotels have increased 20.1% in the past year. H’s earnings beat estimates in each of the trailing four quarters, the average surprise being 1,380.7%.

Choice Hotels International, Inc. CHH has an Earnings ESP of +7.21% and a Zacks Rank #3.

Shares of Choice Hotels have declined 11.9% in the past year. CHH’s earnings surpassed the consensus mark twice in the trailing four quarters and missed twice, the average surprise being 3.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Hyatt Hotels Corporation (H) : Free Stock Analysis Report

Mattel, Inc. (MAT) : Free Stock Analysis Report

Wynn Resorts, Limited (WYNN) : Free Stock Analysis Report

Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report

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