Mattel (MAT) Reports Next Week: Wall Street Expects Earnings Growth

Core Viewpoint - Mattel (MAT) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results having a significant impact on its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on February 10, with a consensus EPS estimate of $0.53 per share, reflecting a year-over-year increase of 51.4% [3]. - Revenues are projected to reach $1.84 billion, marking an 11.7% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 28.13%, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Mattel is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -18.61%, suggesting a bearish outlook from analysts [12]. 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 positive readings being more reliable [9][10]. - Mattel currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Mattel was expected to earn $1.05 per share but only achieved $0.89, resulting in a surprise of -15.24% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Conclusion - While the potential for an earnings beat exists, various factors can influence stock movement beyond just earnings results, making it essential for investors to consider multiple aspects before making decisions [15][17].