Mattel Stock Surges Following Q4 Earnings Beat: Retail’s Cautious

Shares of Mattel Inc. ($MAT)surged on Tuesday, rising 10.39% in after-hours trading, after the toy and entertainment company reported better-than-expected fourth quarter earnings, but retail sentiment seemed cautious.

For the latest quarter, its earnings per share stood at $0.35, beating consensus estimates of about $0.20. Its revenues came in at $1.65 billion, above consensus estimates of $1.63 billion, quoted by Wall Street analysts. Its net sales rose 3% in constant currency terms, the company said.

For 2025, the company expects adjusted EPS to range between $1.66 and $1.72. That compares to $1.58 consensus estimates, according to Fly.com. Its net sales are expected to see growth between 2% and 3%.

“2024 was a year of strong operational excellence for Mattel with top-line 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,” said Ynon Kreiz, chairman and CEO of Mattel.

“We had a strong fourth quarter with both sales growth and margin expansion…We continued to strengthen our balance sheet, repurchased $400 million of shares in 2024, further improved our leverage ratio, and are tracking ahead of schedule to achieve our $200 million cost savings target by the end of 2026.”

Mattel’s 2025 outlook incudes a hike in investments into digital games, and repurchase of $600 million of shares, with its first self-published digital game launch planned in 2026.

Sentiment on Stocktwits turned ‘neutral’ compared to ‘bullish’ a day ago. Message volumes climbed to ‘high’ zone.

Last month, Mattel said its CFO Anthony DiSilvestro plans to retire in May, but stopped short of naming a successor. The company has begun a search process.

Mattel's brands include including Barbie, Hot Wheels, Fisher-Price, Thomas & Friends, UNO, among others.

Mattel stock is up 1.92% year-to-date.

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