Financial Performance - Fourth quarter 2024 net sales increased by 2% to $1,646 million, or 3% in constant currency, compared to the prior year[3]. - Full year 2024 net sales decreased by 1% to $5,380 million, or 0.5% in constant currency, compared to the prior year[4]. - Fourth quarter 2024 reported operating income was $158 million, an increase of $18 million, while adjusted operating income was $161 million, an increase of $14 million[5]. - Full year 2024 reported net income improved by $327 million to $542 million, with earnings per share increasing to $1.58 from $0.60[5]. - Gross margin for the fourth quarter 2024 increased to 50.7%, up 190 basis points from the prior year[8]. - Worldwide net sales for the year ended December 31, 2024, were $5,379.5 million, a slight decrease of 1% compared to $5,441.2 million in 2023[47]. - Net income for the year ended December 31, 2024, was $541.8 million, a significant increase of 153% from $214.4 million in 2023[40]. - Adjusted EBITDA for the year ended December 31, 2024, was $1,057.6 million, reflecting a 12% increase from $947.8 million in 2023[46]. Shareholder Returns - The company repurchased $400 million of shares in 2024 and plans to repurchase an additional $600 million in 2025[5]. - For the year ended December 31, 2024, Mattel reported a net income per common share of $1.58, a significant increase of 163% compared to $0.60 in 2023[44]. Sales by Region - The North America segment saw a 1% increase in net sales in the fourth quarter, while international net sales increased by 3%[6][7]. - North America net sales for Q4 2024 were $975.5 million, a 1% increase from $968.5 million in Q4 2023[49]. - International net sales for Q4 2024 reached $670.9 million, reflecting a 3% increase compared to $652.2 million in Q4 2023[50]. - EMEA region saw a 10% increase in net sales, totaling $402.6 million in Q4 2024, up from $366.5 million in Q4 2023[50]. - Latin America net sales decreased by 16% in Q4 2024, totaling $153.4 million compared to $182.4 million in Q4 2023[50]. - The Asia Pacific region experienced an 11% increase in net sales, totaling $114.9 million in Q4 2024, up from $103.3 million in Q4 2023[50]. Brand Performance - Worldwide gross billings for vehicles increased by 14% to $544 million in the fourth quarter, primarily driven by growth in Hot Wheels[17]. - Barbie brand gross billings decreased by 12% to $1,350.1 million in 2024 from $1,537.8 million in 2023[48]. - Hot Wheels brand gross billings increased by 10% to $1,575.0 million in 2024 compared to $1,432.4 million in 2023[48]. - Barbie brand gross billings decreased by 14% in Q4 2024, totaling $217.4 million compared to $252.8 million in Q4 2023[49]. - Hot Wheels brand gross billings increased by 11% in Q4 2024, reaching $220.3 million, up from $198.5 million in Q4 2023[49]. Operational Metrics - Adjusted Gross Profit and Adjusted Gross Margin are key metrics, with Adjusted Gross Margin providing insight into underlying trends in core profitability[27]. - Adjusted Operating Income and Adjusted Operating Income Margin exclude severance and restructuring expenses, offering a clearer view of operational performance[29]. - Adjusted Earnings Per Share reflects core business performance, adjusted for non-recurring items, providing a more accurate earnings measure[30]. - EBITDA and Adjusted EBITDA are critical for assessing business performance, with Adjusted EBITDA excluding non-core expenses[31]. - Free Cash Flow represents net cash from operating activities minus capital expenditures, crucial for evaluating liquidity[32]. - The Leverage Ratio, calculated as Total Debt divided by Adjusted EBITDA, helps gauge financial health and operational efficiency[33]. - Net Debt, which accounts for cash and equivalents, is a vital indicator for monitoring liquidity and balance sheet strength[34]. - Constant Currency metrics are used to analyze performance trends without the impact of exchange rate fluctuations, enhancing comparability[36]. - Gross Billings serve as a key performance indicator, reflecting amounts invoiced to customers and highlighting significant business trends[37]. Inventory and Cash Flow - Cash flows provided by operating activities for the year ended December 31, 2024, were $800.6 million, down from $869.8 million in 2023[42]. - Net cash flows provided by operating activities for the year ended December 31, 2024, were $800.6 million, down 8% from $869.8 million in 2023[46]. - The company reported a decrease in inventories to $501.7 million in 2024 from $571.6 million in 2023[41]. - The accounts receivable net days of sales outstanding (DSO) improved to 55 days in 2024 from 60 days in 2023[42]. - Free cash flow for the year ended December 31, 2024, was $597.9 million, down 16% from $709.5 million in 2023[46]. Debt and Taxation - The company’s long-term debt remained stable at $2,334.4 million as of December 31, 2024, compared to $2,330.0 million in 2023[41]. - The leverage ratio (Total Debt/Adjusted EBITDA) improved to 2.2x in 2024 from 2.5x in 2023[46]. - The tax rate as reported for 2024 was 17%, a decrease of 41 percentage points from 58% in 2023[45].

Group 1 - The core viewpoint is that Mattel (MAT) is well-positioned to continue its earnings-beat streak, particularly due to its strong historical performance in exceeding earnings estimates [1][3]. - Mattel reported earnings of $1.14 per share for the last quarter, surpassing the Zacks Consensus Estimate of $0.94 per share, resulting in a surprise of 21.28% [2]. - The company has an average surprise of 20.01% over the past two quarters, indicating a consistent ability to exceed expectations [1][2]. Group 2 - There has been a favorable change in earnings estimates for Mattel, with a positive Earnings ESP of +7.69%, suggesting increased analyst optimism regarding its near-term earnings potential [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank 3 (Hold) indicates a high likelihood of another earnings beat, with historical data showing that such combinations lead to positive surprises nearly 70% of the time [4][6]. - The next earnings report for Mattel is anticipated to be released on February 4, 2025 [6].

Earnings Report and Estimates - Mattel Inc (MAT) is scheduled to report Q4 2024 results on Feb 4 after market close [1] - Zacks Consensus Estimate for Q4 earnings is 24 cents per share, down 17.2% YoY [2] - Revenue consensus estimate is $1.68 billion, up 3.4% YoY [2] - Earnings estimates for Q4 have been revised upward by 1 cent per share in the past 7 days [2] Factors Influencing Q4 Performance - Strong demand for Hot Wheels expected to boost Q4 revenue [3] - IP-driven toy business, portfolio innovations, and entertainment expansion are positive factors [4] - Demand creation initiatives and licensing partnerships likely contributed to performance [4] - Higher input costs, unfavorable fixed cost absorption, and supply chain costs may hurt profitability [6] - Increased severance, restructuring expenses, incentive compensation, and pay raises could negatively impact bottom line [6] Brand Performance Estimates - Worldwide gross billings estimates for top brands: - Barbie: $419 million (down 11.4% YoY) [5] - Fisher-Price: $250 million (up 2% YoY) [5] - Hot Wheels: $467 million (up 11.7% YoY) [5] Earnings Prediction Model - Mattel currently has a Zacks Rank 3 (Hold) [8] - Earnings ESP of -11.02% suggests lower likelihood of earnings beat [7] Other Stocks with Earnings Potential - Life Time Group Holdings (LTH): - Earnings ESP +14.29%, Zacks Rank 1 [9] - Expected 5.3% earnings increase for upcoming quarter [10] - Beat earnings in 3 of last 4 quarters with 46.2% average surprise [10] - Trip.com Group (TCOM): - Earnings ESP +0.97%, Zacks Rank 1 [11] - Expected 7.1% earnings decrease for upcoming quarter [11] - Beat earnings in last 4 quarters with 42.8% average surprise [11] - Rush Street Interactive (RSI): - Earnings ESP +22.22%, Zacks Rank 1 [11] - Expected 800% earnings increase for upcoming quarter [12] - Beat earnings in last 4 quarters with 225% average surprise [12]

Core Viewpoint - Mattel (MAT) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being crucial for the stock's near-term price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 4, 2025, with expectations that better-than-expected key numbers could lead to a stock price increase, while missing expectations may result in a decline [2]. - The consensus estimate for Mattel's quarterly earnings is projected at $0.24 per share, reflecting a year-over-year decrease of 17.2%, while revenues are expected to reach $1.68 billion, marking a 3.4% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 36.77%, indicating a collective reassessment by analysts regarding the company's earnings outlook [4]. - The Most Accurate Estimate for Mattel is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -11.02%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a positive reading being a strong predictor of an earnings beat [6][8]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 3, complicating predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, Mattel exceeded the expected earnings of $0.94 per share by delivering $1.14, resulting in a surprise of +21.28% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Conclusion - While the potential for an earnings beat exists, various factors can influence stock movement beyond just earnings results, making it essential to consider other elements before making investment decisions [14][16].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and improve content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - The House Edge is recognized as a unique marketplace service in the casino, gaming, and online sports betting sectors, providing superior returns through in-depth research and industry insights [1][2]. Company Overview - Howard Jay Klein, with 30 years of experience in major casino operations, leads The House Edge, focusing on actionable research for investments in the casino and entertainment industries [2]. Industry Expertise - The House Edge benefits from an extensive intelligence network across the US gambling and entertainment sectors, including insights from various levels of employees and management [2].

Core Insights - Mattel, Inc. is collaborating with TOKYOPOP to create original manga-style graphic novels based on its Hot Wheels and Barbie brands, targeting children aged 8 to 12 [1][2] - The first series inspired by Hot Wheels and a new Barbie title will debut in 2026, featuring original stories and fresh artwork [2] - This partnership aims to enhance fan engagement through storytelling and expand the reach of Mattel's iconic franchises [3] Company Overview - Mattel's premier brands, Hot Wheels and Barbie, have been category leaders, with Hot Wheels particularly popular among young boys and girls [4] - The company has diversified its product offerings for Barbie, including theatrical releases and mobile games, contributing to its global recognition [4] Financial Performance - In Q3 2024, Hot Wheels brand gross billings increased by 12% year-over-year, supported by strong demand for die-cast vehicles and new product innovations [5] - A multi-year licensing partnership with Formula One is expected to enhance Hot Wheels' long-term growth potential [5] - Following the success of the Barbie movie, Mattel is optimistic about launching a new Barbie mobile game in collaboration with Take-Two Interactive [5] Market Position - Mattel's shares have decreased by 4% over the past month, while the Zacks Toys - Games - Hobbies industry has seen a 5% decline [6] - Concerns include soft sales trends in North America and a limited target audience, but new product innovations and enhanced marketing efforts are anticipated to improve performance in 2025 and beyond [6]

For Immediate ReleaseChicago, IL – January 9, 2025 – Today, Zacks Equity Research Mattel, Inc. (MAT) and JAKKS Pacific, Inc. (JAKK) .Industry: Toys - Games - HobbiesLink: https://www.zacks.com/commentary/2393555/2-stocks-gaining-traction-in-the-promising-toys-games-industryThe Zacks Toys - Games - Hobbies industry benefits from the robust demand for smart toys, STEM (science, technology, engineering and math) toys, sports toys, and fashion dolls and accessories. Industry participants have been undertaking e ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to ...