MATTEL Reports 12% Drop in Total Revenue for Q2 2023

🌧️Earnings Overview

For the second quarter of FY2023 ending June 30 2023, MATTEL ($NASDAQ:MAT) reported total revenue of USD 1087.2 million, a 12.0% decrease from the corresponding period of the prior year. The company’s net income for the same period was USD 27.2 million, a 59.0% drop from the same quarter of the previous year. This financial report was released on July 26 2023.

Analysis

GoodWhale has conducted an analysis of MATTEL‘s financials and the results are summarized in the Star Chart. According to the chart, MATTEL is strong in asset, medium in profitability, and weak in dividend and growth. The company has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that MATTEL is likely to safely ride out any crisis without the risk of bankruptcy. Additionally, MATTEL is classified as an ‘elephant’, a type of company that is rich in assets after deducting off liabilities. Given these results, investors who are looking for a safe investment with relatively low growth potential may be interested in MATTEL. Those who prefer higher returns may look elsewhere. Nevertheless, with its strong asset base and intermediate health score, MATTEL appears to be a relatively safe investment opportunity. More…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Mattel. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Mattel. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Mattel. More…

Key Ratios Snapshot

Some of the financial key ratios for Mattel are shown below. More…

Peers

Mattel Inc is one of the world’s largest toy companies, with products sold in more than 150 countries. The company’s main competitors are Games Workshop Group PLC, Carnival PLC, and Escalade Inc.

– Games Workshop Group PLC ($LSE:GAW)

As of 2022, Games Workshop Group PLC has a market cap of 2.06B and a Return on Equity of 41.96%. The company is a miniatures wargaming company that produces miniature models of soldiers, monsters, and scenery for use in tabletop wargaming.

– Carnival PLC ($LSE:CCL)

Carnival PLC is a cruise line company that operates a fleet of cruise ships. The company is headquartered in Miami, Florida and was founded in 1972. As of 2022, Carnival PLC has a market cap of 8.2B and a return on equity of -42.02%. The company operates a total of 102 cruise ships across its various brands, which include Carnival Cruise Lines, Princess Cruises, Holland America Line, P&O Cruises, Costa Cruises, and Cunard Line. In 2019, the company carried a total of 18.1 million passengers.

– Escalade Inc ($NASDAQ:ESCA)

Escalade, Inc. is a publicly traded company that manufactures and markets sports and recreation products. The company has a market capitalization of 152.08 million as of 2022 and a return on equity of 16.3%. Escalade’s products include basketball hoops, game tables, archery equipment, and other sporting goods. The company operates in the United States, Canada, Europe, and Asia.

Summary

Investors should be cautious when considering MATTEL as an investment, as the company reported a 12.0% decline in total revenue for the second quarter of FY2023 compared to the same period last year. Net income also decreased by 59.0%, indicating that the company’s performance is deteriorating. The release of this financial statement on July 26 2023 should help investors determine if this trend is likely to continue. It is important to take into consideration the current economic climate when investing in MATTEL, as certain external factors may have had an impact on their quarterly results.