Mattel shares sink on Q3 earnings

Core Insights - The company experienced disappointing Q3 results, with stock down 9% and as much as 22% at one point, missing both EPS and revenue expectations [1] - Adjusted EPS for Q3 was 89 cents, lower than the expected $1.07, and revenues were $1.74 billion, below the anticipated $1.83 billion [1] - The company projects full-year revenues to be in the range of 1% to 3%, compared to the 1.2% estimate, and adjusted EPS is expected to be between $1.54 and $1.66, versus the $1.61 estimate [1] - The adjusted gross margin for Q3 was 50.2%, down from 53.1% a year ago [1] - The CEO noted challenges in the US business due to industry-wide shifts but expressed optimism about strong fundamentals and growth in consumer demand [1] Future Outlook - The company anticipates strong topline growth in Q4 and is reiterating its full-year 2025 guidance [2] - The strategy includes advancing its IP-driven toy business and expanding entertainment offerings, highlighted by the K-pop Demon Hunters deal with Netflix [2]