- Mattel’s third-quarter adjusted earnings per share (EPS) beat expectations at $1.14, compared to the estimated $0.94.
- Net sales slightly missed estimates at $1.84 billion, marking a 3.9% year-over-year decline.
- The company’s gross billings were close to expectations, reported at $2.05 billion versus an estimated $2.06 billion.
- Dolls segment experienced a significant 14% decline in gross billings to $757.1 million, falling short of the estimated $795.9 million.
- Infant, Toddler, and Preschool segment recorded a 3.1% decline in gross billings, reaching $349.8 million against an estimated $367.9 million.
- The Vehicles segment performed strongly, with a 12% increase in gross billings to $580 million, surpassing the estimated $537.8 million.
- Action Figures, Building Sets, Games, and Other category saw a slight increase of 1.8% in gross billings to $364.3 million, slightly above expectations.
- North America gross billings decreased by 3% year-over-year to $1.18 billion.
- International gross billings also saw a year-over-year decrease of 3.8%, reaching $866.8 million.
- The company reported a gross margin improvement to 53.1%, exceeding last year’s 51% and the estimated 49.5%.
- Adjusted EBITDA rose slightly by 0.8% year-over-year to $584.4 million, beating the estimated $524.6 million.
- For the year forecast, Mattel sees an adjusted gross margin of 50%, higher than the previous range of 48.5% to 49%.
- Capital expenditure is expected to be between $200 million and $225 million, up from a previously anticipated $175 million to $200 million.
- The company maintains its forecast for adjusted EBITDA to be between $975 million and $1.03 billion, with adjusted EPS expected to range from $1.35 to $1.45.
- Mattel anticipates fourth-quarter topline growth driven by a robust holiday season, market share gains, and a strong toy-related film lineup.
- The company expects overall net sales for 2024 to be comparable to slightly down, while still on track to achieve its full-year adjusted EBITDA and EPS guidance.
“`
Mattel Inc on Smartkarma
Analyst coverage on Smartkarma reveals insightful views on Mattel Inc, with Baptista Research presenting a bullish outlook on the company’s strategic moves. In one analysis titled “Mattel Inc.: Will Its Strategic Expansion Into Entertainment & Digital Content Yield Dividends? – Major Drivers,” the second quarter of 2024 results were highlighted, showcasing a mix of challenges and progress within the toy industry. Despite a slight 1% decline in net sales, Mattel demonstrated resilience with stable sales on a constant currency basis, suggesting a notable performance amidst economic fluctuations.
Another report by Baptista Research titled “Mattel Inc‘s Possible Acquisition By LVMH Backed L Catterton – What Is The Expected Valuation & The Deal Rationale?” discussed the impact of a potential takeover bid by L Catterton, leading to a stock price surge and investor interest. This development stirred conversations about the toy industry’s landscape, especially in comparison to rival Hasbro. The analysts delve into Mattel’s business operations, exploring the valuation possibilities through this prospective deal. Overall, the coverage underscores the evolving dynamics and potential growth avenues for Mattel Inc in the market.
A look at Mattel Inc Smart Scores
Factor | Score | Magnitude |
---|---|---|
Value | 3 | |
Dividend | 1 | |
Growth | 3 | |
Resilience | 2 | |
Momentum | 4 | |
OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts assessing Mattel Inc‘s long-term outlook using Smartkarma Smart Scores have highlighted a mixed picture for the toy company. With a top score in Momentum at 4, indicating strong upward movement potential, Mattel shows promise in terms of market trends and investor sentiment. Despite this positive momentum, the company scores lower in other areas. Its Value score of 3 suggests a fair valuation, while Growth also stands at 3, indicating moderate growth prospects. On the flip side, Mattelβs Dividend score is low at 1, reflecting weaker dividend-related factors, and its Resilience score at 2 signals some vulnerability to economic or market fluctuations.
Mattel, Inc. is a renowned player in the children’s toy market, delivering a wide range of toy products globally. From popular fashion dolls to innovative infant and preschool items, the company offers a diverse portfolio that appeals to a broad consumer base. With a focus on branded toys, toy cars, and electric vehicles, Mattel caters to both retail channels and direct-to-consumer sales. While its overall Smartkarma Smart Scores showcase some strengths in momentum and growth, investors may want to consider the companyβs competitive positioning and ability to weather market challenges for a comprehensive assessment of its long-term prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
π‘ Before itβs here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- β Unlimited Research Summaries
- β Personalised Alerts
- β Custom Watchlists
- β Company Analytics and News
- β Events & Webinars