Mattel (MAT) to Report Q1 Earnings: What's in the Offing?

Mattel, Inc. MAT is scheduled to report first-quarter 2022 results on Apr 27, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 60.6%.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter bottom line is pegged at a loss of 5 cents, compared with a loss of 10 cents reported in the prior-year quarter. The estimates have remained stable in the past seven days. The consensus mark for revenues stands at $932.3 million, suggesting growth of 6.7% from the prior-year quarter.

Mattel, Inc. Price and EPS Surprise

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

Factors to Note

The company’s first-quarter performance might have benefited from robust North America sales and strong demand for its products. The Zacks Consensus Estimate for North America revenues stands at $545 million, suggesting growth of 6.4% year over year. Increase in sales of Dolls (including Barbie, Polly Pocket, and Spirit), Action Figures, Building Sets, Games and Other (including Masters of the Universe, Jurassic World and Plush), Vehicles (including CARS), and Infant, Toddler, and Preschool (including Power Wheels) may have driven North America revenues.

The Zacks Consensus Estimate for revenues for Power Brands Barbie and Hot Wheels is pegged at $290 million and $193 million, suggesting improvements of 5.1% and 4.3%, respectively, from the prior-year quarter. The consensus mark for worldwide gross revenues for Thomas & Friends Brand stands at $178 million, up 3.5% year over year. Meanwhile, the consensus mark for gross revenues for Vehicles is pegged at $223 million, suggesting an increase of 3.7% year over year.

The robust performance of the Barbie brand and Hot Wheels bode well. The company has been witnessing an improving sales trend for Hot Wheels and is quite confident about the brand’s long-term prospects.

However, cost inflation may have negatively impacted the company’s operations due to a rise in raw materials and ocean freight, which in turn may have weighed on the company’s bottom line in the quarter to be reported.

What the Zacks Model Unveils

Our proven model predicts 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 chances of an earnings beat.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mattel has an Earnings ESP of +29.49% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks Poised to Beat Earnings Estimates

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

OneWater Marine Inc. ONEW has an Earnings ESP of +0.12% and a Zacks Rank #2.

Shares of OneWater have declined 25.8% in the past year. ONEW’s earnings surpassed the consensus mark in each of the trailing four quarters, the average surprise being 59%.

Penn National Gaming, Inc. PENN has an Earnings ESP of +15.25% and a Zacks Rank #3.

Shares of Penn National have declined 13.3% in the past three months. PENN’s earnings beat the estimates in two of the trailing four quarters and missed twice, the average surprise being 6.9%.

Hilton Worldwide Holdings Inc. HLT has an Earnings ESP of +5.98% and a Zacks Rank #3.

Shares of Hilton have increased 29.8% in the past year. HLT’s earnings beat the estimates in two of the trailing four quarters and missed twice, the average surprise being 0.9%.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.