Shares of Mattel, Inc. (NASDAQ: MAT) had been up 1% on Friday. The inventory has dropped 5% prior to now three months. The toymaker is slated to report its earnings outcomes for the third quarter of 2025 on Tuesday, October 21, after market shut. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $1.84 billion for Mattel within the third quarter of 2025, which is akin to the third quarter of 2024. Within the second quarter of 2025, internet gross sales decreased 6% year-over-year to $1 billion.
Earnings
The consensus goal for earnings per share in Q3 2025 is $1.06, which suggests a decline of seven% from the prior-year interval. In Q2 2025, adjusted EPS remained flat YoY at $0.19.
Factors to notice
Mattel expects internet gross sales to enhance within the again half of the 12 months. The corporate has been seeing optimistic POS within the US and worldwide markets within the third quarter. MAT might be anticipated to profit from the energy of its model portfolio, and from anticipated progress within the toy business, supported by optimistic demand and shopper engagement traits.
Mattel is more likely to profit from continued momentum in classes akin to Motion Figures, Autos, and Video games. Motion Figures has seen progress pushed by tentpole film properties like Jurassic and Minecraft, whereas Autos continues to be fueled by the sturdy efficiency of Sizzling Wheels. Sizzling Wheels is predicted to see continued progress throughout the 12 months.
Final quarter, the Dolls class noticed a decline as a result of fewer new product launches in Barbie. Mattel stays assured within the energy of this model and anticipates a pickup later within the 12 months with new product innovation and partnerships.
Mattel has been engaged on increasing its enterprise past toys and into the broader leisure area with a deal with extremely accretive verticals akin to franchises, shopper merchandise, and digital video games. Its technique of manufacturing motion pictures based mostly on its manufacturers is predicted to proceed yielding advantages.
The corporate is predicted to profit from rising demand from grownup collectors for its merchandise. The Barbie and Sizzling Wheels manufacturers are benefiting from this pattern. Sizzling Wheels has substantial alternative for progress from partnerships with manufacturers like F1 and Ferrari and from the launch of cellular and video video games.
Final quarter, Mattel noticed gross margins develop, helped primarily by financial savings from its Optimizing for Worthwhile Development program. This program is more likely to have yielded advantages throughout the third quarter as effectively.
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