Consumer Products

How Mattel Earnings Will Measure Up to Hasbro

Mattel Inc. (NASDAQ: MAT) is set to report its third-quarter financial results after the markets close on Wednesday. Earlier this week Hasbro Inc. (NASDAQ: HAS) reported its earnings and jumped about 7%, which could provide some insight for Mattel.

The consensus estimates from Thomson Reuters call for $0.71 in earnings per share (EPS) and $1.77 billion in revenue from Mattel. The same period of last year reportedly had EPS of $0.71 and $1.79 billion in revenue.

For comparison, Hasbro posted $2.03 in EPS on $1.68 billion in revenue. The consensus estimates called for $1.74 per share and $1.56 billion. In the third quarter of last year, it posted $1.58 in EPS and revenue of $1.47 billion.

By the looks of it, Mattel has been encouraged by its results over the course of 2016, which have reflected ongoing progress in its turnaround. Importantly, the company is continuing to see improved brand momentum across much of its portfolio, and its slate of entertainment licenses is strong and building. Overall, performance has been in line with expectations, and allowing for continuing foreign exchange headwinds, the company remains broadly on track with its outlook for the year.

Additionally this year Mattel has driven significant momentum across the majority of core brands, most of which saw stronger retail sales and shipping. The company has continued to make headway in key emerging markets like China and Russia as well.

A few analysts weighed in on Mattel ahead of the earnings report:

  • Jefferies reiterated a Buy rating with a $36 price target.
  • MKM Partners has a Buy rating with a $36 price target.
  • BMO Capital Markets has an Outperform rating with a $40 price target.
  • Citigroup has a Buy rating with a $38 price target.
  • B. Riley reiterated a Buy rating with a $38 price target.

Excluding Wednesday’s move, Mattel has outperformed the broad markets, with the stock up about 13% year to date.

Shares of Mattel were trading up 0.7% at $30.92 on Wednesday, with a consensus analyst price target of $35.27 and a 52-week trading range of $22.63 to $34.76.