What’s Driving The Rally In Mattel Stock?

November 4th, 2019 by Trefis Team

Toymaker Mattel (NASDAQ: MAT) saw its stock rally by more than 15% over the last week, after it beat Q3 earnings estimates on both revenues and EPS. The company’s adjusted EPS stood at $0.26, about $0.07 ahead of consensus, while revenue came in at $1.48 billion (up 2.8% year-over-year) beating estimates by around $40 million. While revenue growth was driven by the Barbie and Hot Wheels brands, strong margin expansion helped drive the bottom line (adjusted gross margins expanded 390 bps to 46.9%). While Mattel has seen some volatility this year, on account of concerns relating to tariffs on Chinese imports, it indicated that the tariffs had minimal impact on its Q3 numbers and are unlikely to impact its performance for the rest of the year. Below, we take a look at how the company fared over the last few years and what lies ahead.

View our interactive dashboard analysis on Why Did Mattle Stock Trend Higher Last Week?

How does Mattel’s Revenue Growth in 2018 compare with that in prior periods and what’s the forecast?

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Total Revenues for Mattel moderately decreased from $4.88 Bil in 2017 to $4.51 Bil in 2018; a decrease of -7.60%.

This compares with Total Revenues growth of:

  • -5.33% in 2015
  • -4.31% in 2016
  • -10.5% in 2017

We expect Total Revenues to remain almost flat in 2019.

How does Mattel’s Total Expense in 2018 compare with that in prior periods and what’s the forecast?

Total Expense for Mattel decreased from $5.39 Bil in 2017 to $4.93 Bil in 2018; a decrease of -8.48%.

This compares with Total Expense growth of:

  • -3.65% in 2015
  • -3.66% in 2016
  • 6.74% in 2017

We expect Total Expense growth to be -6.7% in 2019.

How does Mattel’s EBT in 2018 compare with that in prior periods and what’s the forecast?

EBT for Mattel increased significantly by -17.0% from -$505 Mil in 2017 to -$419 Mil in 2018.

We expect EBT to stand at -$90.5 million over 2019.

How do Mattel’s Net Income and EPS in 2018 compare with that in prior periods and what’s the forecast?

View our interactive dashboard analysis for more details on Mattel’s Net Income and EPS

 

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