Mattel Q4 Earnings Beat Estimates, Revenues Lag, Stock Up

Core Insights - Mattel, Inc. reported fourth-quarter 2024 results with earnings exceeding expectations while revenues fell short of estimates, showing year-over-year growth in both metrics [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q4 were 35 cents, surpassing the Zacks Consensus Estimate of 23 cents by 52.2%, compared to 29 cents in the prior-year quarter [4]. - Net sales reached $1.64 billion, slightly below the consensus estimate of $1.66 billion, marking a 2% increase year-over-year [4]. - For the full year 2024, net sales totaled $5.38 billion, down from $5.44 billion in 2023, while net income rose to $541.8 million from $214.4 million in 2023 [14]. Segment Performance - North America segment net sales increased by 1% year-over-year, while the International segment saw a 3% increase [5]. - Gross billings for Vehicles rose by 14% year-over-year, driven primarily by Hot Wheels, while Dolls experienced a decline of 4% [10][8]. Cost Management and Shareholder Value - In 2024, Mattel repurchased $400 million worth of shares and is on track to achieve a $200 million cost-savings target by 2026 [2]. - The company plans a $600 million share repurchase program for 2025, indicating a commitment to long-term shareholder value [2]. Operational Efficiency - Adjusted gross margin improved to 50.8%, up 200 basis points year-over-year, attributed to supply-chain efficiencies and favorable foreign exchange [11]. - Adjusted EBITDA for the quarter was $248.9 million, an increase from $234 million [11]. Future Outlook - For 2025, Mattel anticipates net sales growth of 2-3% year-over-year and adjusted EPS between $1.66 and $1.72 [15].