NASDAQ$MAT

Mattel Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Mattel's financial performance in Q3 2024 was marked by improved profitability and gross margin expansion, despite a slight decrease in net sales.

Mattel reported a 4% decrease in net sales to $1,844 million for Q3 2024, but demonstrated improved profitability with a gross margin increase of 210 basis points to 53.1%. The company achieved a net income of $372 million, a significant improvement compared to the previous year, and adjusted EPS increased to $1.14. Mattel is updating its full year 2024 guidance and expects topline growth in the fourth quarter.

  • Net sales decreased by 4% as reported, or 3% in constant currency, reaching $1,844 million.
  • Gross margin increased by 210 basis points to 53.1%, driven by supply chain efficiencies and cost deflation.
  • Net income improved significantly to $372 million, compared to $146.3 million in the prior year.
  • Adjusted EPS increased to $1.14 from $1.08 in the prior year.

Headline financials

Total Revenue

$1.84B

Previous: $1.92B-3.9%
EPS

$1.09

Previous: $1.08+0.9%
Vehicles Gross Billings

$580M

Previous: $519M+11.9%
Dolls Gross Billings

$757M

Previous: $885M-14.4%
Infant, Toddler, and Preschool Gross Billings

$350M

Previous: $361M-3.1%
Action Figures, Building Sets, Games, and Other Gross Billings

$364M

Previous: $358M+1.8%
Total Gross Billings

$2.05B

No prior period
Barbie Gross Billings

$501M

Previous: $605M-17.3%
Hot Wheels Gross Billings

$508M

Previous: $455M+11.7%
Fisher-Price Gross Billings

$265M

Previous: $317M-16.3%
Adjusted Gross Margin

53.1%

No prior period
Adjusted Operating Income

$504M

No prior period
Adjusted EBITDA

$584M

No prior period
Capital Expenditures

-$168M

Previous: -$60.8M-175.7%
Free Cash Flow

$205M

Previous: $85.5M+139.4%
Net Income

$372M

Previous: $146M+154.5%
Operating Income

$488M

Previous: $474M+3.1%
Gross Profit

$979M

Previous: $978M+0.1%
Cash & Equivalents

$724M

Previous: $456M+58.8%
Total Assets

$6.51B

Previous: $6.24B+4.3%
Stock-Based Comp

$19.7M

Previous: $15.5M+27.1%

Revenue & EPS history

Mattel · Revenue · Quarterly

$1.84B

Q3 2024-3.9%vs Q3 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Mattel · $1.88B total across 2 segments · Q3 2023

  • North America Net Sales
    $1.1B+10.2%
  • International Net Sales
    $772M+9.5%

Forward guidance

Mattel updated its full year 2024 guidance and expects Net Sales to be comparable to slightly down. The company is on track to achieve its full year Adjusted EBITDA and Adjusted EPS guidance, driven by strong Gross Margin performance.

Tailwinds

  • Adjusted Gross Margin ~ 50%
  • Adjusted EPS $1.35 - $1.45
  • Adjusted EBITDA $975 - $1,025
  • Adjusted Tax Rate 21 - 22%
  • Free Cash Flow ~ $500

Headwinds

  • We are operating in a macro-economic environment that may impact consumer demand.
  • The guidance considers what the company is aware of today, but remains subject to market volatility, unexpected disruptions, and other risks and uncertainties.
  • Net Sales Comparable to Slightly Down (Constant Currency)
  • Mattel cautions the reader that this press release contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain.
  • We are operating in a macro-economic environment that may impact consumer demand.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.5%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+0.3%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+21.9%

Q4 2018

Best reaction

-25.0%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.9%-1.1%+0.3%
Q4 2025-25.0%-21.8%-23.7%
Q3 2025-2.8%+1.2%+5.4%
Q2 2025-0.5%-3.2%-3.0%
Q1 2025-0.6%+0.8%+20.5%
Q4 2024+15.3%+17.9%+16.2%
Q3 2024+2.5%+8.9%+3.2%
Q2 2024+1.3%+2.6%+2.9%
Q1 2024+3.0%-1.4%-5.9%
Q4 2023+1.9%+3.5%+6.9%
Q3 2023-8.1%-7.1%-7.1%
Q2 2023+0.3%+0.6%+3.3%
Q1 2023+7.4%+5.2%+6.9%
Q4 2022-11.8%-11.1%-19.5%
Q3 2022-2.3%-5.1%-8.0%
Q2 2022-4.5%-6.5%+3.0%
Q1 2022+11.6%+11.8%+11.8%
Q4 2021+11.8%+10.5%+3.3%
Q3 2021+2.9%+3.3%+13.9%
Q2 2021+3.6%+4.5%+4.7%
Q1 2021+1.0%+4.6%-3.5%
Q4 2020+0.1%+1.4%+13.8%
Q3 2020+13.7%+14.6%+20.8%
Q2 2020-0.2%-0.4%-1.9%
Q1 2020-1.0%+2.8%+18.1%
Q4 2019-3.9%-8.3%-43.1%
Q3 2019+16.7%+15.4%+14.7%
Q2 2019+13.5%+15.9%-24.4%
Q1 2019-3.2%-2.8%-12.8%
Q4 2018+21.9%+31.9%+16.0%
Q3 2018+0.1%+2.6%+0.0%
Q2 2018-5.3%-5.6%-6.6%
Q1 2018+5.1%+4.3%+13.0%
Q4 2017+4.4%+6.4%+4.6%
Q3 2017-9.4%-8.6%+19.8%
Q2 2017-6.1%-5.7%-21.3%
Q1 2017-13.2%-11.9%-11.8%
Q4 2016-16.7%-15.6%-17.4%
Q3 2016+5.7%+7.7%-0.6%
Q2 2016+1.1%+1.3%+1.5%
Q1 2016-8.2%
Q4 2015+10.4%
Q3 2015+6.1%
Q2 2015-5.0%
Q1 2015+5.4%
Q4 2014+3.8%
Q3 2014-5.8%
Q2 2014-7.3%
Q1 2014+0.3%
Q4 2013-16.2%
Q3 2013+2.1%
Q2 2013-5.9%
Q1 2013+2.3%
Q4 2012+3.1%
Q3 2012+5.6%
Q2 2012+10.3%
Q1 2012-6.8%
Q4 2011+0.5%
Q3 2011+4.4%
Q2 2011-0.7%
Q1 2011+1.1%
Q4 2010+0.2%
Q3 2010-0.7%
Q2 2010-1.1%
Q1 2009+1.6%
Q1 2010-2.2%
Q4 2007+1.3%
Q4 2009+1.3%
Q3 2008-0.3%
Q3 2009-0.3%
Q4 2008+1.8%
Q2 2008+1.8%
Q2 2009+1.8%

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