Mattel's fourth-quarter financial results exceeded expectations, driving a surge in its stock price. The toy company reported earnings of 35 cents per share, surpassing the anticipated 20 cents per share, and quarterly revenue of $1.65 billion, slightly above the projected $1.63 billion. This performance was bolstered by growth in the North America segment, particularly in the Vehicles category, with Hot Wheels leading the charge. Despite declines in the Dolls category, primarily Barbie, and in Infant, Toddler, and Preschool categories, the International segment also showed promise with a 3% increase in gross billings, or 6% in constant currency.
Looking forward, Mattel provided an optimistic outlook for fiscal year 2025, forecasting earnings per share between $1.66 and $1.72, above the consensus estimate of $1.58. The company also anticipates revenue growth of 2% to 3%. CEO Ynon Kreiz highlighted the company's focus on profitability and gross margin expansion, alongside plans to celebrate Mattel's 80th anniversary in 2025 with continued growth initiatives. The market responded positively to this guidance, reflecting confidence in Mattel's strategic direction.
Mattel (MAT) shares are currently trading at $20.48, up 13.34% from the previous close of $18.07 on February 4th.