What's Going On With Mattel Shares Wednesday?

Mattel, Inc. MAT shares are trading higher on Wednesday following better-than-expected 2024 fiscal-year fourth-quarter earnings.

The Details: The company released fourth-quarter financial results after the market closed on Tuesday, including sales of $1.65 billion, beating analysts estimate of $1.63 billion and representing a 2% growth year-over-year. In addition, Mattel reported adjusted earnings per share of 35 cents, beating analysts estimate of 20 cents.

Furthermore, Mattel reported adjusted EBITDA of $249 million, a $15 million increase compared to the same period last year, and adjusted operating income of $161 million. The company reported an adjusted gross margin of 50.8%, an increase of 200 basis points year-over-year.

“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,” said Anthony DiSilvestro, CFO of Mattel.

Additionally, Mattel issued guidance for the 2025 fiscal-year. It sees earnings per share from $1.66 to $1.72, versus analysts estimate of $1.58 and revenue growth of 2% to 3%.

“Mattel’s 2025 guidance includes our expectation to grow top and bottom line, increase investments in digital games, and repurchase $600 million of shares. We are well positioned to continue to create long-term shareholder value,” said DiSilvestro.

The company said in the earnings report that the guidance also includes the anticipated impact of U.S. tariffs on imports from China, Mexico and Canada.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Jefferies analyst Kylie Cohu upgraded Mattel from a Hold rating to a Buy rating and raised the price target from $20 to $28.
• Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating on Mattel and raised the price target from $22 to $23.

Related Link: Snap Stock Drops Following Q4 Results And Analyst Downgrade: What’s Going On?

MAT Price Action: At the time of publication, Mattel stock is trading 14.5% higher at $20.69, according to data from Benzinga Pro.

Image: via Shutterstock