Shares of Mattel, Inc. (NASDAQ: MAT) had been up 1% on Friday. The inventory has dropped 5% prior to now three months. The toymaker is slated to report its earnings outcomes for the third quarter of 2025 on Tuesday, October 21, after market shut. Right here’s a take a look at what to anticipate from the earnings report:
Income
Analysts are projecting income of $1.84 billion for Mattel within the third quarter of 2025, which is similar to the third quarter of 2024. Within the second quarter of 2025, web gross sales decreased 6% year-over-year to $1 billion.
Earnings
The consensus goal for earnings per share in Q3 2025 is $1.06, which suggests a decline of seven% from the prior-year interval. In Q2 2025, adjusted EPS remained flat YoY at $0.19.
Factors to notice
Mattel expects web gross sales to enhance within the again half of the yr. The corporate has been seeing constructive POS within the US and worldwide markets within the third quarter. MAT may be anticipated to learn from the power of its model portfolio, and from anticipated development within the toy business, supported by constructive demand and client engagement developments.
Mattel is prone to profit from continued momentum in classes reminiscent of Motion Figures, Autos, and Video games. Motion Figures has seen development pushed by tentpole film properties like Jurassic and Minecraft, whereas Autos continues to be fueled by the robust efficiency of Scorching Wheels. Scorching Wheels is predicted to see continued development through the yr.
Final quarter, the Dolls class noticed a decline resulting from fewer new product launches in Barbie. Mattel stays assured within the power of this model and anticipates a pickup later within the yr with new product innovation and partnerships.
Mattel has been engaged on increasing its enterprise past toys and into the broader leisure area with a concentrate on extremely accretive verticals reminiscent of franchises, client merchandise, and digital video games. Its technique of manufacturing films primarily based on its manufacturers is predicted to proceed yielding advantages.
The corporate is predicted to learn from rising demand from grownup collectors for its merchandise. The Barbie and Scorching Wheels manufacturers are benefiting from this development. Scorching Wheels has substantial alternative for development from partnerships with manufacturers like F1 and Ferrari and from the launch of cell and video video games.
Final quarter, Mattel noticed gross margins increase, helped primarily by financial savings from its Optimizing for Worthwhile Progress program. This program is prone to have yielded advantages through the third quarter as properly.
