Benzinga | Apr 21, 2021 10:55AM EDT

Earnings Preview: Mattel

Mattel (NASDAQ:MAT) releases its next round of earnings this Thursday, April 22. Here is Benzinga's essential guide to Mattel's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts are expecting Mattel to report a loss of $0.34 per share. Revenue will likely be around $687.91 million, according to the consensus estimate. In the same quarter last year, Mattel reported EPS of $0.56 on revenue of $594.10 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 39.29% increase for the company. Revenue would be up 15.79% on a year-over-year basis. Here is how the company's EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.23 0.38 -0.33 -0.41EPS Actual 0.40 0.95 -0.26 -0.56Revenue Estimate 1.58 B 1.46 B 676.13 M 661.20 MRevenue Actual 1.63 B 1.63 B 732.10 M 594.10 M

Stock Performance

For a full 12 months, the return has risen by 148.19%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Mattel is scheduled to hold the call at 17:00:00 ET and can be accessed here.