Core Insights - The article compares Mattel (MAT) and Take-Two Interactive (TTWO) as potential undervalued stocks in the Toys - Games - Hobbies sector [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook [1] Valuation Metrics - MAT has a forward P/E ratio of 12.81, while TTWO has a significantly higher forward P/E of 53.46 [2] - MAT's PEG ratio is 1.19, which is lower than TTWO's PEG ratio of 1.65, suggesting MAT may be more reasonably valued relative to its expected earnings growth [2] - MAT's P/B ratio is 3.16 compared to TTWO's P/B of 4.20, further indicating MAT's superior valuation metrics [3] Value Grades - Based on the valuation figures, MAT has a Value grade of A, while TTWO has a Value grade of F, suggesting that MAT is currently the better value option [3]

The Consumer Discretionary group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Mattel (MAT) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Discretionary sector should help us answer this question. Mattel is a member of our Consumer Discretionary group ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________________ FORM 10-Q ___________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-05647 ___ ...

Rumors of a buyout offer and better-than-expected earnings lifted the stock.Shares of Mattel (MAT 0.79%), the toymaker known for brands like Barbie and Hot Wheels, were flying higher this week after the company received a buyout offer. According to Reuters, Mattel was approached by a private equity firm.The stock surged on that news on Monday, then pulled back on Tuesday as enthusiasm cooled off before jumping again on Wednesday after it reported better-than-expected second-quarter profits on Tuesday night. ...

Core Insights - The article emphasizes the importance of value investing and highlights the use of Zacks Rank and Style Scores to identify strong stocks, particularly those with high value grades [1] Company Overview: Mattel (MAT) - Mattel currently holds a Zacks Rank of 2 (Buy) and a Value grade of A, indicating strong potential for value investors [2] - The stock is trading at a P/E ratio of 12.99, significantly lower than the industry average of 25.55, suggesting it may be undervalued [2] - MAT's Forward P/E has fluctuated between 10.98 and 16.42 over the past year, with a median of 13.73 [2] Valuation Metrics - Mattel has a PEG ratio of 1.16, which is lower than the industry average of 1.28, indicating favorable growth expectations relative to its price [2] - The P/B ratio for Mattel is 3.22, compared to the industry average of 5.48, suggesting a solid market value relative to its book value [3] - The P/S ratio for Mattel stands at 1.2, lower than the industry average of 1.54, indicating better performance metrics [3] Cash Flow Analysis - Mattel's P/CF ratio is 12.27, significantly lower than the industry average of 31.64, which may indicate that the stock is undervalued based on its cash flow outlook [4] - Over the past 52 weeks, MAT's P/CF has ranged from 10.39 to 29.81, with a median of 15.57 [4] Conclusion - Overall, the metrics suggest that Mattel is likely undervalued, and with a strong earnings outlook, it presents an attractive opportunity for value investors [4]

Mattel's stock jumped today, one day after reporting second quarter earnings, and two days after a ... [+] possible buyout offer was reported. (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)AFP via Getty ImagesMattel delivered new evidence in its second-quarter earnings report that its turnaround plan is working. But the boost in the company’s stock today most likely is a reaction to a rumored buyout attempt, rather than Mattel’s performance.Mattel’s stock was up more th ...

Mattel, Inc. (MAT) reported mixed second-quarter 2024 results, with earnings surpassing the Zacks Consensus Estimate and revenues missing the same. The top line missed the consensus estimate for the third straight quarter.The company experienced robust bottom-line performance, propelled mainly by significant gross margin expansion and growth in adjusted EBITDA. MAT is well positioned for the second half with new product innovation and increased retail support. The company is in a strong financial position t ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical ...

Financial Data and Key Metrics Changes - Net sales for Q2 2024 were $1.080 billion, a decline of 1% as reported, but comparable in constant currency [10][17] - Adjusted gross margin increased by 430 basis points to 49.2% [10][21] - Adjusted EBITDA improved by $23 million to $171 million, and adjusted earnings per share increased by $0.09 to $0.19 [10][23] - Free cash flow for the trailing 12-month period was $826 million, compared to $361 million in the prior year [11][24] Business Line Data and Key Metrics Changes - Dolls gross billings declined by 5%, while POS was flat; however, Mattel gained share in the dolls category [18] - Vehicles grew by 2%, driven primarily by Hot Wheels, which increased by 5% [19] - Infant, toddler, and preschool declined by 3%, but Fisher-Price grew by 11% [19] - Challenger categories increased by 1%, led by double-digit growth in games [19] Market Data and Key Metrics Changes - Gross billings declined by 2% in North America, EMEA, and Latin America, while Asia-Pacific increased by 7% [20] - Retail inventory levels were down high single-digits compared to the prior year, indicating a well-positioned inventory for the second half [20][80] Company Strategy and Development Direction - The company is focused on growing its IP-driven toy business and expanding its entertainment offerings, with a strong emphasis on profitability and cash generation [11][29] - New product innovation, increased retail support, and marketing efforts are expected to drive growth in the second half of the year [15][78] - The company is also looking to self-publish mobile games, leveraging its strong brand recognition to reduce user acquisition costs [53][54] Management's Comments on Operating Environment and Future Outlook - The toy industry is expected to decline modestly in 2024, but trends are anticipated to improve beyond that [14][33] - Management expressed confidence in achieving full-year guidance, citing strong fundamentals in the toy business and positive consumer sentiment [15][29] - The company is well-positioned for a good holiday season with new product launches and increased retailer support [15][33] Other Important Information - The company has repurchased $200 million of shares in the first half of 2024 and plans to continue share repurchases [11][24] - The balance sheet has improved significantly, with cash balances increasing to $722 million [25][26] - The company is on track to achieve or exceed targeted savings of $60 million in 2024 as part of its cost-saving initiatives [27][85] Q&A Session Summary Question: Update on consumer health from retail partners - Management noted that the toy industry performed better than anticipated in the first half and expects growth in the second half, driven by new product innovation and increased retail support [33] Question: Impact of freight volatility on financials - Management stated that they are well-positioned with supply chain capabilities and have accounted for anticipated impacts in their guidance [35] Question: Performance of other categories contributing to gross billings - Management highlighted significant growth in games and ongoing scaling of the Pokémon business, while action figures faced challenges [38] Question: Gross margin expectations for the back half of the year - Management expects some cost inflation but believes continued cost savings will offset this, maintaining guidance for gross margin improvement [50] Question: Disparity in stock valuation compared to competitors - Management acknowledged that the stock is undervalued and emphasized the company's strong performance metrics and future potential [57][58] Question: Selling and administrative expenses increase - Management explained that the increase was due to market-related pay increases and investments in IT and talent, with expectations for SG&A to be down in the second half [60] Question: Consumer product licensing business post-Barbie movie - Management indicated that while there will be a decline year-on-year due to the Barbie movie wrap, the licensing business continues to grow [68] Question: Retailer support and shelf space - Management discussed strong relationships with retailers and expectations for increased shelf space and promotional activities in the second half [72] Question: Trends in inventory levels - Management confirmed that both retailer and owned inventory levels are healthy and well-positioned for the upcoming holiday season [80]

For the quarter ended June 2024, Mattel (MAT) reported revenue of $1.08 billion, down 0.7% over the same period last year. EPS came in at $0.19, compared to $0.10 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.09 billion, representing a surprise of -1.04%. The company delivered an EPS surprise of +18.75%, with the consensus EPS estimate being $0.16.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expecta ...