Mattel Shares Surge After Strong Q4 Results, FY25 EPS Guidance Above Estimates

Mattel, Inc. (NASDAQ: MAT) shares climbed after the company reported better-than-expected fourth-quarter results and provided fiscal year 2025 earnings per share (EPS) guidance above estimates. The toy giant's strong performance was driven by growth in key product categories and successful cost-saving measures.

In the fourth quarter, Mattel reported quarterly earnings of $0.35 per share, beating the analyst consensus estimate of $0.20 by 75.0%. Quarterly revenue came in at $1.65 billion, surpassing the analyst consensus estimate of $1.63 billion and representing a 1.6% year-over-year increase. Gross billings in the North America segment increased 1% as reported and in constant currency, while the International segment saw a 3% increase as reported, or 6% in constant currency.

The company's strong performance was driven by growth in key product categories, including Vehicles (primarily Hot Wheels), Action Figures, Building Sets, Games, and Other. Gross billings in the North America segment increased 1% as reported and in constant currency, due to growth in these categories, partly offset by declines in Infant, Toddler, and Preschool and Dolls (primarily Barbie). The International segment saw a 3% increase as reported, or 6% in constant currency, driven by growth in Vehicles and Infant, Toddler, and Preschool, partly offset by declines in Dolls.

Mattel's cost-saving measures and balance sheet strengthening have also contributed to its financial performance. The company achieved its $200 million cost savings target ahead of schedule and further improved its leverage ratio. Mattel repurchased $400 million of shares in 2024, demonstrating its commitment to creating long-term shareholder value.



For fiscal 2025, Mattel expects earnings in a range of $1.66 to $1.72 per share, above the analyst consensus estimate of $1.64. The company also expects revenue growth of 2% to 3%. Mattel's strong Q4 performance and the successful execution of its strategic initiatives position the company well for continued success in 2025.

Analysts have taken note of Mattel's strong performance and positive outlook. J.P. Morgan's Megan Alexander notes that investors might be anticipating earnings closer to 10 cents a share, something that would normally give us pause, but the hopes might be justified. UBS analyst Arpine Kocharyan believes that the toy category continues to be strong, and her separate trade checks indicate that there is no broad inventory glut issue for toys at the end of the quarter.

Mattel's shares are up 7.91% after hours at $19.50, following the release of its Q4 results and FY25 EPS guidance. The company's strong performance and positive outlook suggest that Mattel is well-positioned to continue its growth trajectory in the coming year.