Mattel (MAT) Reports Q1 Loss, Tops Revenue Estimates

Company Performance - Mattel reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of$0.11, and an improvement from a loss of $0.05 per share a year ago, representing an earnings surprise of 72.73$826.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.37% and showing an increase from $809.5 million in the same quarter last year [2] - Over the last four quarters, Mattel has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Outlook - Mattel shares have declined approximately 7.6$0.20 on revenues of $1.1 billion, and for the current fiscal year, it is$1.59 on revenues of $5.42 billion [7] - The estimate revisions trend for Mattel is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Toys - Games - Hobbies industry, to which Mattel belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]