NASDAQ$MAT

Mattel Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Mattel's fourth quarter results were below expectations due to a more challenging macroeconomic environment, but the company gained market share and strengthened its financial position.

Mattel reported a 22% decrease in net sales for Q4 2022, with operating income and net income also declining. Despite these challenges, the company outpaced the industry and gained market share. For the full year, net sales remained flat, and the company strengthened its financial position by reducing debt and improving its leverage ratio.

  • Net sales decreased by 22% as reported, or 19% in constant currency, compared to the prior year.
  • Operating income decreased by $178 million, and adjusted operating income decreased by $185 million.
  • Earnings per share (EPS) was $0.04, compared to $0.63 per share in the prior year, while adjusted EPS was $0.18, compared to $0.53 per share.
  • Gross margin decreased to 43.0%, versus 49.3% in the prior year.

Headline financials

Total Revenue

$1.4B

Previous: $1.8B-21.9%
EPS (adj)

$0.18

Previous: $0.53-66.0%
Vehicles Gross Billings

$403M

Previous: $381M+5.6%
Dolls Gross Billings

$589M

Previous: $804M-26.7%
Infant, Toddler, and Preschool Gross Billings

$267M

Previous: $401M-33.4%
Action Figures, Building Sets, Games, and Other Gross Billings

$301M

Previous: $405M-25.8%
Total Gross Billings

$1.56B

No prior period
Barbie Gross Billings

$372M

Previous: $557M-33.1%
Hot Wheels Gross Billings

$352M

Previous: $326M+7.8%
Fisher-Price Gross Billings

$246M

Previous: $365M-32.7%
Net Income

$16M

Previous: $226M-92.9%
Operating Income

$79M

Previous: $257M-69.3%
Gross Profit

$603M

Previous: $884M-31.8%
Cash & Equivalents

$761M

Previous: $731M+4.1%
Total Assets

$6.18B

Previous: $6.39B-3.4%
Stock-Based Comp

$13.1M

Previous: $13.6M-3.4%

Revenue & EPS history

Mattel · Revenue · Quarterly

$1.4B

Q4 2022-21.9%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Mattel · $1.29B total across 2 segments · Q4 2022

  • North America Net Sales
    $657M-26.2%
  • International Net Sales
    $635M-17.7%

Forward guidance

Mattel provided full year 2023 guidance, including expectations for adjusted gross margin, adjusted EPS, adjusted EBITDA, adjusted tax rate, capital expenditures, and free cash flow.

Tailwinds

  • Adjusted Gross Margin: Approximately 47%
  • Adjusted EPS: $1.10 - $1.20
  • Adjusted EBITDA: $900 - $950 million
  • Adjusted Tax Rate: 25 - 26%
  • Free Cash Flow: Greater than $400 million

Headwinds

  • The company is operating in a challenging macro-economic environment with higher volatility, including inflation, that may impact consumer demand.
  • Guidance remains subject to further volatility and any unexpected disruption, including fluctuations in foreign exchange rates, inflation, changes in global economic conditions and consumer demand, labor market fluctuations, and other macro-economic risks and uncertainties.
  • Net Sales: Comparable (Constant Currency) to FY2022 of $5,435 million
  • Capital Expenditures: $175 - $200 million
  • No specific negative was provided, these are just risks

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 Q4 2022

Historical avgQ4 2022

+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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