Mattel’s Q4 earnings report exceeded the estimates of Wall Street analysts followed by a stock surge of 8.74%. The toymaker reported adjusted earnings of $0.35 per share, surpassing the forecast of $0.20. Revenue also exceeded expectations, reaching $1.65 billion, slightly higher than the projected $1.64 billion. Ynon Kreiz, Mattel CEO and Chairman said, “2024 was a year of strong operational excellence for Mattel with topline growth in the fourth quarter. Our priorities for the year were to grow profitability, expand gross margin, and generate strong free cash flow and we achieved all three objectives, well ahead of expectations. ”
Mattel’s Q4 2024 earnings of $0.35 per share far surpassed the $0.20 forecast, beating expectations by 75%. Revenue also slightly exceeded estimates, reaching $1.65 billion compared to the projected $1.64 billion.
Mattel Q4 Earnings Report
In Q4 2024, Mattel showed resilience with a 3% rise in net sales in constant currency, despite a slight 0.5% decline in full-year sales. Adjusted EBITDA grew 12% to $1.058 billion, and adjusted EPS jumped 32% to $1.62. These strong results outperform the broader toy industry, which saw a slight dip in 2024.
Mattel saw an increase in gross billings both in North America and internationally, although Barbie dolls experienced a decline. Despite a shorter holiday season, Kocharyan remained optimistic, noting that the drop in Barbie sales had been expected and communicated. She highlighted strong performances from Hot Wheels and dolls tied to the “Moana” movie release in Q4.
Mattel 2025 Outlook
Mattel expects net sales to grow by 2-3% in constant currency for 2025, with adjusted EPS ranging from $1.66 to $1.72, a 2-6% increase. The company plans to repurchase $600 million in shares and aims to release its first self-published digital game in 2026, marking a shift toward digital entertainment.
Mattel projected higher-than-expected profits for the year but warned of potential price hikes due to new tariffs from President Trump. The company plans to manage this by optimizing its supply chain and possibly raising toy prices. CEO Ynon Kreiz emphasized that Mattel will work with retail partners to strike the right balance of quality, value, and affordability.
Mattel Stock Update
After Mattel’s earnings announcement, its stock rose 8.74% in after-hours trading, reaching $19.65, bringing it closer to its 52-week high of $20.60. This positive market response reflects strong investor confidence in Mattel’s growth prospects, despite challenges in the toy industry. Analysts continue to have a bullish outlook, with price targets ranging from $20 to $28.
