Toy manufacturing and entertainment company (NASDAQ:MAT) will be reporting earnings tomorrow after market close. Here's what to look for.

Last quarter Mattel reported revenues of $1.62 billion, up 15.6% year on year, missing analyst expectations by 1.1%. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates but a miss of analysts' revenue estimates.

Is Mattel buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Mattel's revenue to grow 2.3% year on year to $832.9 million, improving on the 21.8% year-over-year decline in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.12 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates three times over the last two years.

Looking at Mattel's peers in the consumer discretionary segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Nike delivered top-line growth of 0.3% year on year, beating analyst estimates by 1.1% and Carnival reported revenues up 22% year on year, inline with estimates. Nike traded down 7% on the results, Carnival was down 4.1%.

Read our full analysis of Nike's results here and Carnival's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the consumer discretionary stocks have fared somewhat better, they have not been spared, with share price declining 6.4% over the last month. Mattel is down 6.6% during the same time, and is heading into the earnings with analyst price target of $23.2, compared to share price of $18.1.

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