DA Davidson analyst Linda Bolton Weiser says she came away from Mattel's analyst meeting and Toy Fair booth with no incremental positives. CFO Joe Euteneuer clarified his expectations for FY18 gross margins to be in "low 40s", vs. prior forecast of "well into the 40s", Weiser noted, adding that the only "interesting" new products were six toys developed by the "incubator" group started in September 2017. The analyst believes that the only positive catalyst would be if Mattel won back the Disney Princess license, which could come at the May licensing show. Weiser keeps her Neutral rating and $12 price target, but lowers her FY18 EPS target to 18c from 34c on margin reduction.

In an interview on CNBC's Mad Money, Ynon Kreiz said Mattel has a very clear strategy to grow its IP-driven toy business. The priority is "first and foremost" to drive organic growth. He "couldn't be more excited" with Barbie's growth trajectory.

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Sees FY24 free cash flow $500M. Says has more than $1.1B in cash. Says bent portfolio well positioned with no maturities until 2026. Says trends in consumer demand for product improved through the quarter and expects to outpace the industry and gain market share in 2024. Says retail inventory levels have been largely corrected. Says now at appropriate levels to support the business going forward. Comments taken from Q1 earnings conference call and investor presentation slides.

Reports Q1 revenue $810M, consensus $831.8M. Ynon Kreiz, Chairman and CEO of Mattel, said: "We are off to a good start to the year with significant gross margin expansion, positive Adjusted EBITDA, and very strong improvement in free cash flow. Trends in consumer demand for our product improved through the quarter and we expect to outpace the industry and gain market share in 2024. We are executing our strategy to grow our IP-driven toy business and expand our entertainment offering." Anthony DiSilvestro, CFO of Mattel, added: "We achieved strong bottom-line results, primarily driven by margin expansion, repurchased $100 million of shares in the quarter, and are on track to meet our full year guidance. We expect to continue to benefit from the Optimizing for Profitable Growth program, which is targeting $60 million in cost savings in 2024 and a total of $200 million in cost savings by 2026."