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Sep 30, 2023
Mattel Q3 2023 Earnings Report
Mattel's Q3 2023 performance reflected a successful execution of their strategy, marked by increased consumer demand and outpacing the industry, benefiting from the success of the Barbie movie.
Key Takeaways
Mattel reported a strong third quarter with net sales up 9% to $1,919 million. The company raised its 2023 guidance for Adjusted Gross Margin, Adjusted EBITDA, and Adjusted EPS, driven by the success of the Barbie movie and overall strategic execution.
Net sales increased by 9% as reported, or 7% in constant currency, reaching $1,919 million.
Operating income rose to $474 million, an increase of $82 million compared to the prior year.
Adjusted Earnings Per Share (EPS) increased to $1.08, compared to $0.82 in the prior year.
The company updated its full-year 2023 guidance, anticipating improvements in adjusted gross margin, adjusted EBITDA, and adjusted EPS.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel updated its full year 2023 guidance.
Positive Outlook
- Adjusted Gross Margin: 47 - 48%
- Adjusted EPS: $1.15 - $1.25
- Adjusted EBITDA: $925 - $975 million
- Adjusted Tax Rate: 25 - 26%
- Free Cash Flow: > $400 million
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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