NASDAQ$MAT

Mattel Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Mattel's financial performance was inline with expectations, marked by a significant increase in free cash flow and continued market share gains. The release of the Barbie movie was a key milestone.

Mattel reported a decrease in net sales by 12% to $1,087 million, with operating income decreasing by $62 million to $63 million. Earnings per share decreased to $0.08 from $0.18 in the prior year. The company highlighted the upcoming Barbie movie as a key milestone and reiterated its 2023 guidance.

  • Net sales decreased by 12% as reported, or 13% in constant currency.
  • Gross margin increased by 70 basis points to 45.1%.
  • Operating income decreased by $62 million to $63 million.
  • The company reiterated its 2023 guidance.

Headline financials

Total Revenue

$1.09B

Previous: $1.24B-12.0%
EPS (adj)

$0.10

Previous: $0.18-44.4%
Vehicles Gross Billings

$364M

Previous: $328M+10.8%
Dolls Gross Billings

$441M

Previous: $401M+9.8%
Infant, Toddler, and Preschool Gross Billings

$197M

Previous: $275M-28.2%
Action Figures, Building Sets, Games, and Other Gross Billings

$226M

Previous: $372M-39.3%
Total Gross Billings

$1.23B

No prior period
Barbie Gross Billings

$283M

Previous: $301M-6.0%
Hot Wheels Gross Billings

$315M

Previous: $287M+10.0%
Fisher-Price Gross Billings

$165M

Previous: $251M-34.3%
Capital Expenditures

-$37M

Previous: -$39.7M+6.7%
Free Cash Flow

-$9.84M

Previous: $26.8M-136.8%
Net Income

$27.2M

Previous: $66.4M-59.1%
Operating Income

$62.8M

Previous: $125M-49.8%
Gross Profit

$490M

Previous: $549M-10.8%
Cash & Equivalents

$300M

Previous: $275M+9.2%
Total Assets

$5.9B

Previous: $6.17B-4.4%
Stock-Based Comp

$20M

Previous: $18.6M+7.7%

Revenue & EPS history

Mattel · Revenue · Quarterly

$1.09B

Q2 2023-12%vs Q2 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Mattel · $1.06B total across 2 segments · Q2 2023

  • North America Net Sales
    $597M-17.9%
  • International Net Sales
    $463M-2.9%

Forward guidance

Mattel's full year 2023 guidance remains comparable to 2022, with adjusted gross margin around 47%, adjusted EPS between $1.10 and $1.20, adjusted EBITDA between $900 and $950 million, capital expenditures between $175 and $200 million, and free cash flow greater than $400 million.

Tailwinds

  • Adjusted Gross Margin ~ 47%
  • Adjusted EPS $1.10 - $1.20
  • Adjusted EBITDA $900 - $950 million
  • Capital Expenditures $175 - $200 million
  • Free Cash Flow > $400 million

Headwinds

  • The company is operating in a challenging macro-economic environment with higher volatility, including inflation, that may impact consumer demand.
  • Guidance takes into account what the company is aware of today but remains subject to further volatility and any unexpected disruption
  • Fluctuations in foreign exchange rates
  • Changes in global economic conditions and consumer demand
  • Labor market fluctuations, and other macro-economic risks and uncertainties.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+0.3%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+21.9%

Q4 2018

Best reaction

-25.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.1%+0.3%
Q4 2025-25.0%-21.8%-23.7%
Q3 2025-2.8%+1.2%+5.4%
Q2 2025-0.5%-3.2%-3.0%
Q1 2025-0.6%+0.8%+20.5%
Q4 2024+15.3%+17.9%+16.2%
Q3 2024+2.5%+8.9%+3.2%
Q2 2024+1.3%+2.6%+2.9%
Q1 2024+3.0%-1.4%-5.9%
Q4 2023+1.9%+3.5%+6.9%
Q3 2023-8.1%-7.1%-7.1%
Q2 2023+0.3%+0.6%+3.3%
Q1 2023+7.4%+5.2%+6.9%
Q4 2022-11.8%-11.1%-19.5%
Q3 2022-2.3%-5.1%-8.0%
Q2 2022-4.5%-6.5%+3.0%
Q1 2022+11.6%+11.8%+11.8%
Q4 2021+11.8%+10.5%+3.3%
Q3 2021+2.9%+3.3%+13.9%
Q2 2021+3.6%+4.5%+4.7%
Q1 2021+1.0%+4.6%-3.5%
Q4 2020+0.1%+1.4%+13.8%
Q3 2020+13.7%+14.6%+20.8%
Q2 2020-0.2%-0.4%-1.9%
Q1 2020-1.0%+2.8%+18.1%
Q4 2019-3.9%-8.3%-43.1%
Q3 2019+16.7%+15.4%+14.7%
Q2 2019+13.5%+15.9%-24.4%
Q1 2019-3.2%-2.8%-12.8%
Q4 2018+21.9%+31.9%+16.0%
Q3 2018+0.1%+2.6%+0.0%
Q2 2018-5.3%-5.6%-6.6%
Q1 2018+5.1%+4.3%+13.0%
Q4 2017+4.4%+6.4%+4.6%
Q3 2017-9.4%-8.6%+19.8%
Q2 2017-6.1%-5.7%-21.3%
Q1 2017-13.2%-11.9%-11.8%
Q4 2016-16.7%-15.6%-17.4%
Q3 2016+5.7%+7.7%-0.6%
Q2 2016+1.1%+1.3%+1.5%
Q1 2016-8.2%
Q4 2015+10.4%
Q3 2015+6.1%
Q2 2015-5.0%
Q1 2015+5.4%
Q4 2014+3.8%
Q3 2014-5.8%
Q2 2014-7.3%
Q1 2014+0.3%
Q4 2013-16.2%
Q3 2013+2.1%
Q2 2013-5.9%
Q1 2013+2.3%
Q4 2012+3.1%
Q3 2012+5.6%
Q2 2012+10.3%
Q1 2012-6.8%
Q4 2011+0.5%
Q3 2011+4.4%
Q2 2011-0.7%
Q1 2011+1.1%
Q4 2010+0.2%
Q3 2010-0.7%
Q2 2010-1.1%
Q1 2009+1.6%
Q1 2010-2.2%
Q4 2007+1.3%
Q4 2009+1.3%
Q3 2008-0.3%
Q3 2009-0.3%
Q4 2008+1.8%
Q2 2008+1.8%
Q2 2009+1.8%

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