- Mattel’s adjusted earnings per share (EPS) for the fourth quarter were 35 cents, surpassing the estimate of 20 cents and improving from 29 cents year-over-year.
- Net sales reached $1.65 billion, a 1.6% increase from last year, exceeding the estimate of $1.63 billion.
- Gross billings totaled $1.88 billion, ahead of the expected $1.84 billion.
- Dolls gross billings were $734.9 million, a 3.7% decrease year-over-year, yet above the $704.6 million estimate.
- Infant, Toddler, and Preschool gross billings dropped by 5.5% to $276.2 million, below the expected $296.7 million.
- Vehicles category saw a 14% increase in gross billings, reaching $543.8 million, surpassing the $511.1 million estimate.
- Action Figures, Building Sets, Games, and Other categories experienced a 5.2% rise to $327.1 million, beating the $314.9 million estimate.
- North America gross billings grew by 1.3% to $1.06 billion, while international sales rose by 3.4% to $824.9 million.
- Worldwide gross billings, excluding foreign exchange effects, increased by 3%.
- Mattel’s gross margin improved to 50.7% from 48.8% the previous year; adjusted gross margin was 50.8%, exceeding the 48.4% estimate.
- Adjusted EBITDA increased by 6.4% to $248.9 million, surpassing the forecasted $197.1 million.
- For 2025, Mattel projects adjusted EPS between $1.66 to $1.72, higher than the estimate of $1.56.
- The company expects 2025 net sales growth of 2% to 3% in constant currency, with adjusted operating income ranging from $740 million to $765 million.
- Free cash flow for 2025 is anticipated to be approximately $600 million.
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Mattel Inc on Smartkarma
Analyst coverage on Mattel Inc. by Baptista Research on Smartkarma sheds light on the company’s recent financial performance and strategic outlook. In their report titled “Mattel Inc.: Diversified Product & Brand Strategy Powering Our Bullishness! – Major Drivers,” Baptista Research highlights Mattel’s ability to maintain profitability and resilience in a challenging market despite a 4% decrease in net sales. The report focuses on the company’s efforts to strengthen its global presence and financial health.
Continuing their analysis, Baptista Research‘s report “Mattel Inc.: Will Its Strategic Expansion Into Entertainment & Digital Content Yield Dividends? – Major Drivers,” discusses Mattel’s mixed results in the second quarter of 2024. While net sales slightly declined by 1%, the company showed stability on a constant currency basis, indicating resilience in the face of economic fluctuations. The report considers the strategic progress within the toy industry and the potential dividends from Mattel’s expansion into entertainment and digital content.
A look at Mattel Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Mattel Inc, a renowned global toy company, seems to be positioned well for the long term based on the Smartkarma Smart Scores analysis. With satisfactory scores in value, growth, and momentum, Mattel showcases strength in these aspects. Its value score indicates that the stock may be priced fairly, while the growth score suggests potential for expansion and development. Furthermore, the momentum score reflects positive market sentiment and investor interest in the company’s future prospects.
However, it is worth noting that Mattel’s scores in dividend and resilience are relatively lower. The low dividend score may indicate a lack of strong income distribution to shareholders, while the resilience score suggests a moderate ability to withstand economic challenges. Despite these challenges, Mattel Inc‘s core business of designing and manufacturing a diverse range of children’s toys on a global scale positions it as a prominent player in the industry, offering products such as fashion dolls, toy cars, and more to both retailers and consumers worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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