While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, inc ...

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 ...

Wolterk Shares of Mattel, Inc. (NASDAQ:MAT) have been a particularly poor performer over the past year, losing over 20% even as the market has rallied substantially. As the tailwind from the Barbie movie has faded, the extremely muted demand for toys has weighed on results. Shares briefly jumped Monday on M&A speculation, before giving back much of those gains Tuesday. I last covered Mattel in October, mistakenly rating them a buy, and shares are down 20% since that recommendation. With toy demand stayi ...

After years of consumers cutting back on nonessential retail purchases, Mattel is now starting to feel optimistic about the future of toys sales. On Tuesday (July 23), the toy and entertainment giant, owner of iconic brands including Barbie, Hot Wheels, Fisher-Price, American Girl and many others, reported its second quarter 2024 financial results. On a call with analysts, Ynon Kreiz, the company’s chairman and CEO, related improvements in the toys sector. “The toy industry performed better than anticipated ...

Second Quarter 2024 Earnings (Unaudited Results) July 23, 2024 Cautionary Note Regarding Forward-Looking Statements / Presentation Information Mattel cautions the viewer that this presentation contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include statements regarding Mattel's guidance and goals for ...

Mattel (MAT) came out with quarterly earnings of $0.19 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.75%. A quarter ago, it was expected that this toy maker would post a loss of $0.12 per share when it actually produced a loss of $0.05, delivering a surprise of 58.33%.Over the last four quarters, the company has surpasse ...