Strong Barbie & Hot Wheels Sales to Aid Mattel's (MAT) Q4 Earnings

Mattel, Inc. MAT is scheduled to report fourth-quarter 2021 results on Feb 9, after the closing bell. In the last reported quarter, the company’s earnings beat the Zacks Consensus Estimate by 16.7%.

Q4 Estimates

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 33 cents, indicating a decline of 17.5% year over year. Over the past seven days, the estimates have remained stable. The consensus mark for revenues stands at $1.66 billion, suggesting growth of 2.3% from the prior-year quarter.

Factors to Note

The company’s fourth-quarter performance might have benefited from robust e-commerce growth, highly efficient supply chain and strong demand for its products. Robust performance of Barbie brand and Hot Wheels is likely to have aided the company’s sales in the quarter to be reported.

The Zacks Consensus Estimate for revenues for Power Brands Barbie and Hot Wheels are pegged at $481 million and $351 million, suggesting an improvement of 2.1% and 1.5%, respectively, from the prior-year quarter. However, the consensus mark for Fisher-Price and Thomas & Friends Brand revenues stands at $356 million, suggesting a decline of 4.6% year over year.

Strong North America sales is likely to have favored the company’s fourth-quarter performance. The Zacks Consensus Estimate for North America revenues stands at $849 million, suggesting growth of 9% year over year.

However, increased expenses and coronavirus woes might have negatively impacted the company’s performance. Dismal store traffic on account of travel and other local restrictions may have weighed on the company’s to-be-reported quarter's performance.

Mattel, Inc. Price and EPS Surprise

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

What the Zacks Model Unveils

Our proven model doesn’t 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 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 0.00% and a Zacks Rank #4 (Sell).

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 space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat:

Oxford Industries, Inc. OXM has an Earnings ESP of +2.97% and a Zacks Rank #1.

Shares of Oxford Industries have gained 28% in the past year. OXM’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 96.7%.

Cedar Fair, L.P. FUN has an Earnings ESP of +6.02% and a Zacks Rank #1.

Shares of Cedar Fair have appreciated 32.4% in the past year. FUN’s earnings beat the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 16.5%.

PlayAGS, Inc. AGS has an Earnings ESP of +42.71% and a Zacks Rank #2.

Shares of PlayAGS have surged 42.7% in the past year. AGS’ earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 33.3%.

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.