Mattel (NASDAQ:MAT) Announces Quarterly Earnings Results, Beats Expectations By $0.36 EPS

Mattel (NASDAQ:MAT) issued its earnings results on Thursday. The company reported $1.30 earnings per share for the quarter, beating the consensus estimate of $0.94 by $0.36, FiscalAI reports. Mattel had a return on equity of 16.20% and a net margin of 7.79%. The company had revenue of $1.81 billion during the quarter, compared to analysts’ expectations of $1.84 billion. During the same period in the prior year, the business posted $0.89 EPS. Mattel’s quarterly revenue was up 4.1% compared to the same quarter last year.

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

• Mattel lowered its 2026 outlook, now forecasting constant-currency sales growth of 1%–4%, adjusted operating income of $500 million–$570 million, and adjusted EPS of $1.05–$1.20. Management attributed the revision to softer-than-expected point-of-sale trends that slowed late in Q3 and continued into Q4 across major markets.
• Q3 net sales rose 3% in constant currency to $1.81 billion, adjusted operating income increased to $502 million, and adjusted EPS reached $1.30 from $0.91 a year earlier. However, adjusted gross margin’s 480-basis-point improvement was largely driven by tariff refunds, including an $88 million benefit to cost of goods sold.
• Brand performance was mixed: Hot Wheels continued to show strength and is approaching $2 billion in gross billings, while Barbie remained below management’s expectations despite a slight improvement in trends. Vehicles and partner-brand dolls grew, while infant, toddler, and preschool declined, primarily due to Fisher-Price.
• New CEO Roger Lynch said Mattel will sharpen its focus on core toys, brand execution, innovation, and disciplined investment, with digital and entertainment opportunities built around stronger toy franchises. CFO Peter Griffith said the company is reviewing how it can simplify operations and use technology, data, and AI to improve productivity; the leadership team plans to provide 2027 guidance in February.

Mattel Trading Down 3.9%

MAT traded down $0.60 during midday trading on Thursday, reaching $14.97. 5,967,909 shares of the company’s stock traded hands, compared to its average volume of 6,152,299. The firm has a fifty day moving average of $15.01 and a two-hundred day moving average of $15.41. The stock has a market capitalization of $4.28 billion, a price-to-earnings ratio of 11.01, a P/E/G ratio of 1.65 and a beta of 0.59. The company has a debt-to-equity ratio of 1.17, a current ratio of 1.90 and a quick ratio of 1.26. Mattel has a 52 week low of $12.40 and a 52 week high of $22.48.

Key Mattel News

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Mattel reported third-quarter EPS of $1.30, above analysts’ $0.94 estimate, while revenue rose 4.1% year over year. Mattel Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Mattel appointed Steve Totzke president and COO, effective November 11, as Roberto Stanichi steps down to pursue another opportunity. Netflix has hired Stanichi to lead consumer products and experiences; the leadership changes may bring a shift in execution, but their financial impact is not yet clear. Mattel leadership announcement Netflix hires Mattel executive
• Negative Sentiment: Mattel cut its full-year 2026 forecasts for net sales, adjusted operating income and EPS after quarterly revenue of $1.81 billion fell short of the $1.84 billion consensus. Reports also said tariff refunds boosted margins, suggesting some earnings support may not reflect underlying business strength. Mattel cuts annual forecasts Mattel’s struggles continue; tariff refunds boosted margins

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. Odeon Capital Group started coverage on Mattel in a research report on Thursday, July 16th. They issued a “buy” rating for the company. Argus restated a “buy” rating and issued a $22.00 target price on shares of Mattel in a report on Tuesday, August 25th. Roth Capital decreased their target price on shares of Mattel from $16.00 to $15.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Seaport Research Partners raised shares of Mattel from a “neutral” rating to a “buy” rating and set a $20.00 target price on the stock in a research note on Monday, October 12th. Finally, Weiss Ratings lowered shares of Mattel from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Mattel has a consensus rating of “Hold” and an average price target of $18.00.

Insiders Place Their Bets

In other news, EVP Roberto Isaias sold 39,083 shares of Mattel stock in a transaction that occurred on Monday, August 31st. The stock was sold at an average price of $15.02, for a total value of $587,026.66. Following the sale, the executive vice president directly owned 144,390 shares in the company, valued at approximately $2,168,737.80. This trade represents a 21.30% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 1.90% of the company’s stock.

About Mattel

Mattel, Inc is a global toy and entertainment company that designs, manufactures and markets a broad portfolio of toys, games and consumer products. Its best-known brands include Barbie, Hot Wheels, Fisher-Price, American Girl, Matchbox, UNO, Masters of the Universe and Thomas & Friends. Mattel also develops entertainment content and licenses its intellectual property for use in consumer products, digital experiences and other media.

Founded in 1945, Mattel has expanded from a U.S.