Mattel misses Q4 revenue estimates, sets new $1.5 bln share repurchase program

Overview

• Toy maker's Q4 revenue rose 7% but missed analyst expectations

• Adjusted EPS for Q4 increased to $0.39 from $0.35

• Company announced new $1.5 bln share repurchase program

Outlook

• Mattel expects 2026 net sales to grow 3% to 6% in constant currency

• Company projects 2026 adjusted EPS between $1.18 and $1.30

• Mattel plans $150 mln strategic investments to support brand-centric strategy

Result Drivers

• REGIONAL SALES - North America sales increased by 5%, while international sales grew by 11%, contributing to overall revenue growth

• PRODUCT CATEGORY PERFORMANCE - Vehicles category, led by Hot Wheels, saw a 20% increase in billings, while action figures grew 16% due to theatrical releases

• MARGIN PRESSURE - Gross margin decreased due to higher discounts, inflation, and unfavorable foreign exchange, partially offset by cost savings

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the toys & children's products peer group is "buy"

• Wall Street's median 12-month price target for Mattel Inc is $25.00, about 16.1% above its February 9 closing price of $21.54

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw32bmsca

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