Core Insights - Mattel is considering increasing toy prices to offset the impact of tariffs imposed by President Trump on imports from China, Mexico, and Canada [1][3] - The company is actively analyzing various scenarios to mitigate the financial impact of these tariffs, with a focus on leveraging its supply chain [4][6] Tariff Impact and Company Strategy - The 10% tariff on imports from China has already taken effect, while tariffs on Mexico and Canada have been paused for one month [2] - Mattel's CFO indicated that the company's 2025 guidance includes the anticipated impact of the new tariffs and the planned mitigating actions [4] - Less than 40% of Mattel's global toy production is expected to occur in China this year, significantly lower than the industry average of approximately 80% [5] - The company's tariff exposure related to China is estimated to be about 20% of global production, with less than 10% sourced from Mexico and no sourcing from Canada [6] Production and Sales Forecast - Mattel aims to ensure that no single country accounts for more than 25% of its production by 2027 [6] - The company forecasts a 2%-3% growth in net sales for fiscal 2025, with adjusted earnings per share projected between $1.66 and $1.72 [7] - In 2024, Mattel generated nearly $5.38 billion in net sales and reported an annual net income of $541.8 million [9]

Core Insights - Mattel ended 2024 positively, exceeding sales and earnings expectations in Q4, leading to a stock price increase of over 15% due to a favorable outlook for 2025 [1][2] - The company forecasts a full-year net sales growth of 2% to 3% and adjusted earnings per share growth of 2% to 6% for 2025, although tariffs may negatively impact consumer demand [2][4] Company Performance - Mattel reported Q4 net sales of $1.646 billion, a 2% increase, and adjusted earnings per share of 35 cents, which was 70% above analysts' expectations of 20 cents [6] - The growth was driven by strong sales of Hot Wheels and Uno, while Barbie sales declined by 4% compared to the previous year [6] Manufacturing Strategy - The company is diversifying its manufacturing footprint, sourcing from seven countries, with China expected to account for less than 40% of global production [4][5] - Currently, less than 10% of toys are sourced from Mexico, and none from Canada, with plans to ensure no single country represents more than 25% of total global production by 2027 [5] Industry Outlook - The toy industry faced challenges in 2024, with overall sales down 0.6% globally and 0.3% in the U.S., but there is optimism for a return to growth in 2025 [11][12] - Mattel's CEO expressed confidence in the industry's fundamentals and expected growth, supported by a strong product lineup and upcoming movie releases [12]

Core Insights - Mattel's stock surged 12.5% after reporting a strong fourth-quarter earnings beat, with adjusted earnings of $0.35 per share on sales of $1.65 billion, surpassing analyst expectations of $0.20 per share on $1.63 billion in sales [1][2] Financial Performance - In Q4, Mattel's sales grew by 2% year over year, and its gross profit margin expanded by 190 basis points to 50.7% [2] - For the full year, Mattel's sales declined by 1% to $5.4 billion, but it improved its gross margin by 330 basis points to 50.8% [3] - GAAP earnings per share for the full year were $1.58, significantly higher than the $0.60 per share earned in 2023 [3] Future Outlook - CEO Ynon Kreiz described 2024 as a "year of strong operational excellence" and projected sales growth of 2% to 3% while maintaining profit margins [4] - Management forecasted adjusted earnings to grow to between $1.66 and $1.72 per share, indicating a growth rate of about 4% [4][5]

Group 1 - Mattel is considering raising prices on toys like Barbie and Hot Wheels due to new tariffs imposed by President Trump [1][2] - Approximately 40% of Mattel's toys are manufactured in China, with less than 10% produced in Mexico [2] - The company is exploring supply chain adjustments and potential price increases as mitigating actions against the tariffs [2] Group 2 - A 10% tariff on Chinese goods was recently imposed, while planned 25% duties on imports from Mexico and Canada have been paused for 30 days [3] - Economists predict that these tariffs will likely result in price increases for consumers [3] - The imposition of tariffs on Mexico and Canada remains uncertain, as Trump may use them as a negotiation tactic [3]

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].

KEY TAKEAWAYSMattel shares are rising in premarket trading Wednesday, after the maker of Barbie dolls and Hot Wheels announced plans to mitigate the threat of tariffs by reorienting its supply chain and forecast a surprising growth in 2025 sales.Mattel said that it would take "mitigating actions" to limit the impact of tariffs.UBS analysts said Mattel's projection of 2025 was a big surprise and that Mattel could shift some production out of China. Mattel (MAT) shares are rising more than 12% in premarket tr ...

Mattel, Inc. (NASDAQ:MAT) Q4 2024 Earnings Conference Call February 4, 2025 5:00 PM ET Company Participants Jenn Kettnich - Vice President, Investor Relations Ynon Kreiz - Chairman and Chief Executive Officer Anthony DiSilvestro - Chief Financial Officer Conference Call Participants Stephen Laszczyk - Goldman Sachs Alexander Perry - Bank of America Megan Clapp - Morgan Stanley Chris Horvers - JPMorgan Arpine Kocharyan - UBS Eric Handler - Roth Capital Fred Wightman - Wolfe Research Linda Bolton-Weiser - D.A ...

Fourth Quarter and Full Year 2024 Earnings (Unaudited Results) February 4, 2025 Cautionary Note Regarding Forward-Looking Statements / Presentation Information Mattel cautions the viewer that this presentation contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include statements regarding Mattel's guidan ...

Core Insights - Mattel reported $1.65 billion in revenue for Q4 2024, a year-over-year increase of 1.6% and an EPS of $0.35, up from $0.29 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $1.66 billion by -0.53%, while the EPS exceeded the consensus estimate of $0.23 by +52.17% [1] Revenue Performance - Barbie gross billings were $406 million, below the average estimate of $419.40 million, reflecting a year-over-year decline of -14.2% [4] - Hot Wheels gross billings reached $481.40 million, surpassing the estimated $446.19 million, marking a year-over-year increase of +15.3% [4] - Fisher-Price gross billings were $206.10 million, below the average estimate of $249.61 million, indicating a year-over-year decline of -16% [4] - Other categories reported gross billings of $788.50 million, exceeding the estimate of $751.94 million [4] Category Performance - Infant, Toddler, and Preschool category gross billings were $276.20 million, slightly below the estimate of $279.96 million, with a year-over-year change of -5.5% [4] - Vehicles category gross billings were $543.80 million, above the estimate of $508.75 million, reflecting a year-over-year increase of +14.5% [4] - Dolls category gross billings were $734.90 million, below the average estimate of $745.05 million, showing a year-over-year decline of -3.7% [4] Stock Performance - Mattel's shares have returned -3% over the past month, compared to a +1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Viewpoint - Mattel reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.23 per share, and showing an increase from $0.29 per share a year ago, representing an earnings surprise of 52.17% [1][2] Financial Performance - The company posted revenues of $1.65 billion for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.53%, compared to $1.62 billion in the same quarter last year [2] - Over the last four quarters, Mattel has surpassed consensus EPS estimates four times but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - Mattel shares have increased approximately 0.3% since the beginning of the year, underperforming the S&P 500, which gained 1.9% [3] - The future performance of the stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $812.73 million, and for the current fiscal year, it is $1.58 on revenues of $5.5 billion [7] - The estimate revisions trend for Mattel is mixed, resulting in a Zacks Rank 3 (Hold), 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 top 16% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Hasbro, a competitor in the same industry, is expected to report quarterly earnings of $0.36 per share, reflecting a year-over-year decline of 5.3% [9]