Mattel(MAT) ZACKS·2025-01-28 16:05Core Viewpoint - Mattel (MAT) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 4, 2025, with expectations that better-than-expected key numbers could lead to a stock price increase, while missing expectations may result in a decline [2]. - The consensus estimate for Mattel's quarterly earnings is projected at 1.68 billion, marking a 3.4% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 36.77%, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. - The Most Accurate Estimate for Mattel is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -11.02%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [6][8]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Mattel exceeded the expected earnings of 1.14, resulting in a surprise of +21.28% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While the potential for an earnings beat exists, various factors can influence stock movement beyond just earnings results, making it essential to consider other elements before making investment decisions [14][16].