Mattel (NASDAQ:MAT) is expected to report Q3 earnings Friday, October 16 before the market open with a conference call scheduled for 8:30 am ET.
Analysts are looking for EPS of 63c on revenue of $1.78B. The consensus range is 58c-67c for EPS, and revenue of $1.7B-$1.83B, according to First Call. In July the company forecast net savings of $40M-$50M evenly spread in Q3 and Q4, and said it hadn't made a decision on price increases for spring toys. The company is currently executing a cost-cutting plan and looks to save $180M-$200M over two years.
Gerrick Johnson, with BMO Capital, believes revenue results will be weak overall but within expectations from the cost cutting moves. He said the stronger dollar will continue to hurt toy makers, but expects this to be the last quarter that will occur. Toy makers are preparing for the holiday season, a crucial time which makes up nearly half of their yearly sales. Analysts and investors will listen for comments on the upcoming holiday season, as well as on its cost cutting efforts. Mattel shares rose 13% during the quarter.