Mattel's earnings call reflects a balanced sentiment with notable strides in gross margin and cash flow, partially offsetting declines in net sales and the Dolls segment. The company remains optimistic about growth in the fourth quarter and a strong holiday season.

Company Guidance

During Mattel's third-quarter 2024 earnings call, executives highlighted several key financial metrics and strategic initiatives. Net sales declined by 4% as reported and 3% in constant currency, primarily due to the challenging comparison with the previous year's Barbie movie success. Despite this, the company achieved significant profitability improvements, with adjusted gross margin increasing by 210 basis points to 53.1%, and adjusted EBITDA rising by 1% to $584 million. Adjusted EPS grew by 6% to $1.14, supported by strong gross margin performance and fewer shares outstanding due to repurchases totaling $268 million in the first nine months of 2024. Free cash flow improved nearly 50% to $688 million over the trailing 12 months. Looking forward, Mattel anticipates net sales to remain comparable to slightly down for the full year, with expectations for growth in the fourth quarter driven by a strong holiday season, supported by retailer partnerships and innovative product offerings. The company also continues to advance its entertainment strategy, with notable developments in film and digital gaming, projecting a continuation of its multiyear strategy to enhance long-term shareholder value.

Strong Gross Margin Performance

Adjusted gross margin increased 210 basis points to 53.1%, benefiting from supply chain improvements and cost savings.

Significant Free Cash Flow Improvement

Free cash flow in the trailing 12 months improved nearly 50% to $688 million compared to the same period a year ago.

Hot Wheels Growth and Expansion

Vehicles performance was strong, led by Hot Wheels, with a 13% growth. Hot Wheels is on track for its seventh consecutive record year.

Optimizing for Profitable Growth Program Success

The program achieved $23 million of savings in the quarter and is on track to exceed the original target with $75 million savings expected in 2024.

Positive Outlook for Holiday Season

Retailer sentiment is positive, with expectations of growth in the fourth quarter driven by increased marketing and new product launches.

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Mattel (MAT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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MAT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 05, 2025	2024 (Q4)	0.20 / -	0.29	―	―	―
Oct 23, 2024	2024 (Q3)	0.95 / 1.14	1.08	5.56% (+0.06)
Jul 23, 2024	2024 (Q2)	0.17 / 0.19	0.1	90.00% (+0.09)
Apr 23, 2024	2024 (Q1)	-0.13 / -0.05	-0.24	79.17% (+0.19)
Feb 07, 2024	2023 (Q4)	0.31 / 0.29	0.18	61.11% (+0.11)
Oct 25, 2023	2023 (Q3)	0.86 / 1.08	0.82	31.71% (+0.26)
Jul 26, 2023	2023 (Q2)	-0.03 / 0.10	0.18	-44.44% (-0.08)
Apr 26, 2023	2023 (Q1)	-0.26 / -0.24	0.08	-400.00% (-0.32)
Feb 08, 2023	2022 (Q4)	0.29 / 0.18	0.53	-66.04% (-0.35)
Oct 25, 2022	2022 (Q3)	0.74 / 0.82	0.84	-2.38% (-0.02)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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MAT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 23, 2024	$17.78	$18.57	+4.44%
Jul 23, 2024	$17.24	$18.93	+9.80%
Apr 23, 2024	$18.73	$19.18	+2.40%
Feb 07, 2024	$18.81	$18.87	+0.32%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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