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Mattel (MAT) to Report Q3 Earnings: What's in the Cards?

Mattel's (MAT) third-quarter performance is likely to reflect strong POS growth on the back of store reopenings, inventory restocking as well as expansion in online retail and e-commerce space.

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This story originally appeared on Zacks

Mattel, Inc. MAT is scheduled to report third-quarter 2021 results on Oct 21, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 200%.

- Zacks

How are Estimates Placed?

The Zacks Consensus Estimate for third-quarter bottom line is pegged at 72 cents per share, indicating a deterioration of 24.2% from 95 cents reported in the year-ago quarter.



For revenues, the consensus mark is pegged at $1,686 million, which suggests growth of 3.3% from the prior-year quarter’s figure.

Mattel, Inc. Price and EPS Surprise

 

Mattel, Inc. Price and EPS Surprise

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

 

Let's take a look at how things have shaped up in the quarter.

Factors to Note

Mattel’s third-quarter performance is likely to reflect strong Point of sale (POS) growth on the back of store reopenings, inventory restockings as well as expansion in online retail and e-commerce space. Moreover, progress related to capturing the full value of its IP is likely to have boosted third-quarter top line. This along with focus on initiatives like product innovation, demand creation (in collaboration with retail partners), promotional strategies and digital efforts is likely to have driven the company’s performance in the to-be-reported quarter.



Moreover, increase in revenues of Power Brands might have contributed to the company’s third-quarter performance. The Zacks Consensus Estimate for revenues for Fisher-Price and Thomas & Friends Brand and Hot Wheels are pegged at $395 million and $341 million, suggesting improvements of 26.2% and 8.9%, respectively, year over year. The consensus mark for Barbie is pegged at $518 million, indicating a decline of 2.6% year over year.



However, shipping container shortages and high costs exacerbated by the pandemic-induced temporary port and plant shutdowns is likely to have negatively impacted the company’s performance in the to-be-reported quarter. This along with supply chain disruptions and labor shortages are expected to have dented the company’s third quarter top line.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Mattel this time around. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. But that's not the case here.



Earnings ESP: Mattel has an Earnings ESP of -1.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.



Zacks Rank: The company carries a Zacks Rank #4 (Sell).

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 this quarter:



Golden Entertainment, Inc. GDEN sports a Zacks Rank #1 and has an Earnings ESP of +51.95%. You can see the complete list of today’s Zacks #1 Rank stocks here.



Boyd Gaming Corporation BYD has a Zacks Rank #2 and an Earnings ESP of +2.17%.



Accel Entertainment, Inc. ACEL has a Zacks Rank #2 and an Earnings ESP of +20%.



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

 

Boyd Gaming Corporation (BYD): Free Stock Analysis Report

 

Golden Entertainment, Inc. (GDEN): Free Stock Analysis Report

 

Accel Entertainment, Inc. (ACEL): Free Stock Analysis Report

 

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