The last target I had for them was $66.00. GLTA
1:02 AM EDT, 10/26/2022 (MT Newswires) -- National Bank of Canada said Mattel Inc. (NASDAQ: MAT) may have provided a prelude to Spin Master Corp.'s (TOY.TO) reporting with the prospect of a Q3 profit beat along with some added pressure signaled for Q4 due to rising macro challenges and their potential impact on consumers heading into holiday shopping.
The bank noted that Spin Master will report its Q3 results after market hours on Nov. 2. It said its estimates are slightly below Street expectations for revenue and adjusted EBITDA.
The bank also said that the focus remains on foreign exchange pressures and the acknowledgment that some Q3 sales got pulled forward into Q2 as retailers tried to minimize supply chain challenges ahead of the second half.
Reviewing Mattel's Q3 results, the bank said the toymaker's revenue was lower than Street expectations due mostly to forex and adjusted EBITDA was ahead of consensus on improved margins as price increases and savings trumped cost of goods sold inflation of 330 bps.
The bank said that although Mattel expects 2022 revenue growth excluding forex to remain around 8%-10%, forex headwinds are poised to be greater at 3%-4% instead of 2%-3% and adjusted EBITDA is now telegraphed to be $1,050 million to $1,100 million rather than $1,100 million to $1,125 million.
For 2023, Mattel anticipates top- and bottom-line growth, but will review its outlook and provide an update with its Q4 reporting in the new year, the bank noted.
Price: 46.01, Change: -0.05, Percent Change: -0.11