Mattel (NASDAQ:MAT) Announces Quarterly Earnings Results

Mattel (NASDAQ:MAT) issued its earnings results on Tuesday. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.04 by ($0.03), FiscalAI reports. The firm had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.10 billion. Mattel had a return on equity of 18.67% and a net margin of 9.27%.The firm’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period last year, the firm posted $0.19 earnings per share. Mattel updated its FY 2026 guidance to 1.270-1.390 EPS.

Here are the key takeaways from Mattel’s conference call:

• Mattel reported strong top-line growth, with second-quarter net sales up 10% as reported and 9% in constant currency, led by North America, vehicles, challenger categories, and digital games. The company said positive consumer demand has continued into the third quarter and reiterated its full-year 2026 guidance.
• Hot Wheels grew 12% and continues to gain share, while action figures benefited from Masters of the Universe, Toy Story 5, WWE, and DC; Masters of the Universe gross billings more than tripled year to date. Mattel also cited continued potential in Hot Wheels, building sets, and adult collector markets.
• Mattel163 contributed approximately $49 million of revenue and $14 million of adjusted operating income in the quarter, with the acquisition performing in line with expectations. The company expects digital games, including the planned global launch of UNO Wild in early 2027, to become an increasingly important growth driver.
• Profitability weakened in the quarter: adjusted gross margin fell to 48.6%, adjusted operating income declined to $39 million from $96 million, and adjusted EPS dropped to $0.01 from $0.21. Tariffs, inflation, higher royalties, foreign exchange, and increased strategic advertising and SG&A spending pressured results.
• Management expects Barbie trends to improve in the second half of 2026 and the brand to return to growth in 2027, supported by increased content, the new Barbie Dreamhouse, packaging changes, and adult-fan initiatives. Executives also forecast 2027 mid- to high-single-digit sales growth and strong double-digit bottom-line growth, though these remain forward-looking expectations.

Mattel Price Performance

Shares of MAT opened at $14.80 on Wednesday. The firm has a market cap of $4.30 billion, a PE ratio of 9.37, a P/E/G ratio of 1.30 and a beta of 0.72. The company has a current ratio of 2.06, a quick ratio of 1.50 and a debt-to-equity ratio of 1.11. The firm has a fifty day simple moving average of $14.20 and a two-hundred day simple moving average of $15.72. Mattel has a 1-year low of $12.73 and a 1-year high of $22.48.

Mattel News Summary

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Second-quarter revenue rose 10.5% year over year to $1.13 billion, exceeding Wall Street’s approximately $1.10 billion estimate. Hot Wheels and action figures were key contributors to the sales performance. Hot Wheels and action figures drive Mattel to a Q2 sales beat, but tariffs weigh on profits
• Positive Sentiment: Management maintained its full-year 2026 outlook, calling for adjusted EPS of $1.27 to $1.39 and revenue of $5.5 billion to $5.7 billion. Executives also said third-quarter growth is continuing and reiterated confidence in achieving the annual targets. Mattel Reports Second Quarter 2026 Financial Results
• Neutral Sentiment: Mattel continues investing in its strategy to expand from a toy manufacturer into an IP-driven play, entertainment and family-content company. However, most revenue still comes from traditional toy sales, leaving the company exposed to changes in discretionary consumer spending. Mattel Is Stuck in the Toy Aisle, Despite Big Hollywood Ambitions
• Negative Sentiment: Second-quarter EPS was $0.01, below estimates ranging from $0.03 to $0.04 and down from $0.19 a year earlier. Mattel reported an $18.2 million net loss as higher advertising, selling and administrative expenses reduced profitability. Mattel Q2 Earnings Lag Estimates
• Negative Sentiment: Tariffs and other cost increases are weighing on margins, while slower traditional toy spending reflects pressure on discretionary consumers. The midpoint of Mattel’s revenue outlook is also below the current $5.7 billion analyst consensus, adding to investor caution. Mattel misses second-quarter profit estimates as toy spending slows

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on MAT shares. The Goldman Sachs Group downgraded shares of Mattel from a “neutral” rating to a “sell” rating and reduced their price target for the company from $15.00 to $12.00 in a research report on Thursday, July 9th. Roth Capital cut their target price on Mattel from $16.00 to $15.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Citigroup reduced their target price on Mattel from $16.00 to $15.00 and set a “neutral” rating for the company in a report on Friday, July 10th. Odeon Capital Group assumed coverage on Mattel in a research note on Thursday, July 16th. They issued a “buy” rating for the company. Finally, Zacks Research raised Mattel from a “strong sell” rating to a “hold” rating in a research report on Monday, April 13th. Two equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, six have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $17.33.

Hedge Funds Weigh In On Mattel

A number of institutional investors and hedge funds have recently modified their holdings of MAT. EdgePoint Investment Group Inc. increased its position in Mattel by 6.0% during the fourth quarter. EdgePoint Investment Group Inc. now owns 47,341,242 shares of the company’s stock valued at $939,250,000 after acquiring an additional 2,678,482 shares during the last quarter. Alyeska Investment Group L.P. boosted its position in Mattel by 274.0% in the fourth quarter. Alyeska Investment Group L.P. now owns 3,445,360 shares of the company’s stock worth $68,356,000 after purchasing an additional 2,524,123 shares during the last quarter. Serenity Capital Management PTE. LTD. bought a new stake in shares of Mattel during the 4th quarter valued at about $47,331,000. BNP Paribas Financial Markets grew its stake in shares of Mattel by 4,633.8% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,581,292 shares of the company’s stock valued at $26,613,000 after purchasing an additional 1,547,888 shares during the period. Finally, Squarepoint Ops LLC grew its stake in shares of Mattel by 69.7% during the 4th quarter. Squarepoint Ops LLC now owns 3,663,464 shares of the company’s stock valued at $72,683,000 after purchasing an additional 1,504,576 shares during the period. 97.15% of the stock is currently owned by hedge funds and other institutional investors.

Mattel Company Profile

Mattel, Inc is a leading global toy company headquartered in El Segundo, California. Founded in 1945 by Harold “Matt” Matson and Elliot and Ruth Handler, the company has grown into a major player in the toy and family products industry. Mattel designs, manufactures, and markets a broad range of toys, games and entertainment products under well-known brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO and Matchbox. In addition to its proprietary labels, Mattel holds licenses with global entertainment franchises, partnering with Disney, Warner Bros., WWE and other studios to create character-driven play experiences.