What to Look for When Mattel (MAT) Reports Q2 Earnings on Wednesday
NEW YORK (TheStreet) -- Shares of Mattel (MAT) - Get Report closed down 0.8% to $32.37 on Tuesday ahead of the company's 2016 second quarter results due out after tomorrow's closing bell.
Wall Street is expecting the El Segundo, CA-based toy company to report a loss for the period and a decline in revenue year-over-year.
Analysts polled by Thomson Reuters are projecting a loss of 5 cents per share on revenue of $936.6 million.
Last year, Mattel said it had adjusted earnings of one cent per share on revenue of $988.2 million.
MKM Partners maintained its "neutral" rating and $33 price target on shares ahead of the results. The firm is expecting an in-line to slightly better-than-expected quarter.
"That said, with inventories presumably still in good shape and shipping for the holidays still a couple of months away, the implications from 2Q are likely minimal. FX fears have returned with the recent Brexit issues," MKM wrote in a recent note.
But headwinds in Europe could be partially offset by the recent strengthening in Latin American currencies, especially the Brazilian real, according to the firm.
"We believe Mattel continues to progress with its turnaround efforts and its 4.6% dividend yield is attractive for income investors," MKM added.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance.
But the team also finds weaknesses including weak operating cash flow, deteriorating net income and disappointing return on equity.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MAT