Mattel Stock Is An Early Holiday Shopping Play

On July 27, 2021, Mattel released its fiscal second-quarter 2021 results for the quarter ending June 2021. The Company reported an earnings-per-share (EPS) profits of $0.03 beating analyst estimates for a loss of (-$0.06), by $0.09. Revenues rose 40.2% year-over-year (YoY) to $1.03 billion, beating analyst estimates for $890 million. North American gross billings rose 30% and worldwide gross billings for dolls rose 51% to $395 million. Worldwide gross billings for infant, toddler and preschool were up 15% to $229 million driven by Fisher-Price and Thomas & Friends. Worldwide gross billings for toy vehicles rose 68% to $266 million led by Hot Wheels, Matchbox and CARS. Adjusted gross margin rose to 47.5% from 43.8%. The Company grew market share for the third straight quarter. Mattel CEO Ynon Kreiz commented:

Mattel raised its guidance expectations with annual net sales growth to nearly double to 12% to 14%, up from %6 to 8% range. The Company expects mid-single-digit growth in 2022 and 2023. Adjusted EBITDA for 2021 was raised to $875 million to $900 million, up from $800 million to $825 million.

CEO Kreiz set the tone:

CEO Kreiz noted:

Using the rifle charts on weekly and daily time frames provides a precision view of the landscape for MAT stock. The weekly rifle chart turned bearish after peaking near the $23.35 Fibonacci (fib) level. Shares have been selling off on the weekly market structure high (MSH) sell trigger under $22.00. The weekly breakdown has a falling 5-period moving average (MA) at $20.08 heading towards the weekly lower Bollinger Bands (BBs) near the $18.02 fib. The weekly stochastic has a mini inverse pup oscillation down falling under the 40-band. The daily rifle chart has an inverse pup breakdown with a falling 5-period MA resistance at $19.09 as it coils off the daily lower BBs at $18.18. The daily stochastic has fallen to the 20-band and stalled out for either a cross back up on the daily market structure low (MSL) buy trigger above $19.61 or a mini inverse pup. Prudent investors can watch for opportunistic pullbacks levels at the $18.27 fib, $17.55 sticky 2.50s level, $17.07 fib, $16.42, and the $15.68 sticky 5’s level.

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