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Mattel Soars 13.45% on Strong Q4 Earnings and Upbeat 2025 Outlook

Mattel's stock is experiencing a significant surge following the release of its fourth-quarter financial results, which exceeded market expectations. The toymaker reported earnings of 35 cents per share, surpassing the anticipated 20 cents per share, and achieved a quarterly revenue of $1.65 billion, slightly above the projected $1.63 billion. This performance was driven by strong sales in the North America segment, particularly in the Vehicles category, which includes Hot Wheels, as well as in Action Figures, Building Sets, and Games. Despite some declines in the Dolls category, primarily Barbie, the International segment also showed growth, with gross billings up by 3% as reported, or 6% in constant currency.

In addition to the robust quarterly results, Mattel provided an optimistic outlook for fiscal year 2025, forecasting earnings per share in the range of $1.66 to $1.72, above the consensus estimate of $1.58. This positive guidance, coupled with a recent upgrade from Jefferies Financial Group, which raised Mattel's rating from "hold" to "buy" and increased the price target from $20.00 to $28.00, has further fueled investor confidence. The company also plans to launch its first self-published digital game in 2026, signaling a strategic expansion into digital entertainment.

Mattel (MAT) shares are currently trading at $20.50, marking a 13.45% increase from the previous close of $18.07 on February 4th.