Earnings To Watch: Mattel (MAT) Reports Q3 Results Tomorrow

Toy manufacturing and entertainment company (NASDAQ:MAT) will be reporting earnings tomorrow after market close. Here’s what to expect.

Mattel missed analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $1.08 billion, flat year on year. It was a mixed quarter for the company, with a decent beat of analysts’ earnings estimates.

Is Mattel a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Mattel’s revenue to decline 3% year on year to $1.86 billion, a reversal from the 9.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.95 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Mattel has missed Wall Street’s revenue estimates five times over the last two years.

Looking at Mattel’s peers in the consumer discretionary segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Nike’s revenues decreased 10.4% year on year, meeting analysts’ expectations, and Scholastic reported revenues up 3.8%, topping estimates by 1.6%. Nike traded down 6.8% following the results while Scholastic was up 6%.

Read our full analysis of Nike’s results here and Scholastic’s results here.

Investors in the consumer discretionary segment have had steady hands going into earnings, with share prices flat over the last month. Mattel is down 3.4% during the same time and is heading into earnings with an average analyst price target of $23.88 (compared to the current share price of $18.50).

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