NASDAQ$MAT

Mattel Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Mattel's financial performance soared in Q3 2020, marked by significant topline growth and enhanced profitability.

Mattel reported a strong Q3 2020, with net sales up 10% and significant profitability increases. The company saw growth in key markets and gained market share, driven by strong performance in the Dolls and Vehicles categories. Mattel anticipates continued growth in Q4 and expects strong Net Income and EBITDA growth for the full year.

  • Net Sales increased by 10% as reported, and 11% in constant currency, compared to the prior year.
  • Dolls category Gross Sales rose by 22% as reported, and 24% in constant currency, with Barbie Gross Sales up by 29% as reported, and 30% in constant currency.
  • Reported Operating Income increased by 156%, and Adjusted Operating Income increased by 131%.
  • Reported Net Income increased by 348%.

Headline financials

Total Revenue

$1.63B

Previous: $1.48B+10.1%
EPS (adj)

$0.95

Previous: $0.26+265.4%
Vehicles Gross Billings

$369M

Previous: $347M+6.5%
Dolls Gross Billings

$691M

Previous: $568M+21.7%
Infant, Toddler, and Preschool Gross Billings

$404M

Previous: $431M-6.2%
Action Figures, Building Sets, Games, and Other Gross Billings

$355M

Previous: $311M+13.8%
Barbie Gross Billings

$532M

Previous: $413M+28.9%
Hot Wheels Gross Billings

$313M

Previous: $293M+6.6%
Capital Expenditures

-$49M

Previous: -$39M-25.8%
Free Cash Flow

$267M

Previous: $31.6M+744.0%
Net Income

$316M

Previous: $70.6M+347.6%
Operating Income

$384M

Previous: $150M+156.0%
Gross Profit

$832M

Previous: $686M+21.3%
Cash & Equivalents

$452M

Previous: $218M+107.1%
Total Assets

$5.6B

Previous: $5.53B+1.4%
Stock-Based Comp

$16.5M

Previous: $14.8M+11.5%

Revenue & EPS history

Mattel · Revenue · Quarterly

$1.63B

Q3 2020+10.1%vs Q3 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Mattel · $1.58B total across 2 segments · Q3 2020

  • North America Net Sales
    $925M+12.5%
  • International Net Sales
    $656M+7.8%

Forward guidance

Mattel expects Net Sales and Gross Sales to grow in the fourth quarter. Looking to the full year, with continued operational savings and margin expansion, the company expects to see strong Net Income and EBITDA growth.

Tailwinds

  • Net Sales and Gross Sales are expected to grow in the fourth quarter.
  • Continued operational savings.
  • Margin expansion.
  • Strong Net Income growth is expected for the full year.
  • Strong EBITDA growth is expected for the full year.

Headwinds

  • COVID-19 volatility could negatively impact performance.
  • Macro-economic uncertainties could negatively impact performance.
  • Potential impacts of the COVID-19 pandemic on business operations.
  • Potential impacts of the COVID-19 pandemic on financial results.
  • Potential impacts of the COVID-19 pandemic on financial position.

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 Q3 2020

Historical avgQ3 2020

+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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