Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q4 2025 investor letter. A copy of the letter can be downloaded here. The Strategy underperformed the Russell 2000 Index during the fourth quarter as well as in FY2025. The stock selection drove the underperformance of the Strategy in the quarter. The strategy’s emphasis on high-quality stocks lagged behind broader market trends. However, the firm expects the environment to be more favorable for high-quality businesses ...

Core Viewpoint - Mattel reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.16 per share, and matching the earnings from the previous year, indicating a positive earnings surprise of +18.75% [1] Financial Performance - The company achieved revenues of $1.02 billion for the quarter ended June 2025, which fell short of the Zacks Consensus Estimate by 3.79% and represented a decline from $1.08 billion in the same quarter last year [2] - Over the last four quarters, Mattel has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Mattel shares have increased approximately 12.2% since the beginning of the year, outperforming the S&P 500's gain of 7.3% [3] Future Outlook - The company's earnings outlook will be crucial for determining the stock's immediate price movement, with current consensus EPS estimates at $1.16 on $1.88 billion in revenues for the upcoming quarter and $1.64 on $5.46 billion in revenues for the current fiscal year [4][7] - The estimate revisions trend for Mattel was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Toys - Games - Hobbies industry, to which Mattel belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting potential challenges ahead [8]