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

Mattel (NASDAQ:MAT) announced its earnings results on Thursday. The company reported $1.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.94 by $0.36, FiscalAI reports. The firm had revenue of $1.81 billion for the quarter, compared to analyst estimates of $1.84 billion. Mattel had a net margin of 7.79% and a return on equity of 16.20%.

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%

Shares of MAT stock traded down $0.60 during mid-day trading on Thursday, reaching $14.97. The company’s stock had a trading volume of 5,967,909 shares, compared to its average volume of 5,185,959. The company’s 50 day simple moving average is $15.02 and its 200-day simple moving average is $15.44. Mattel has a 12-month low of $12.40 and a 12-month high of $22.48. The company has a quick ratio of 1.26, a current ratio of 1.90 and a debt-to-equity ratio of 1.17. The firm has a market capitalization of $4.28 billion, a PE ratio of 11.01, a price-to-earnings-growth ratio of 1.62 and a beta of 0.59.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the company. Weiss Ratings cut Mattel from a “hold (c-)” rating to a “sell (d+)” rating in a report on Tuesday, August 11th. UBS Group reaffirmed a “buy” rating on shares of Mattel in a research report on Thursday, October 1st. Odeon Capital Group began coverage on Mattel in a research note on Thursday, July 16th. They issued a “buy” rating for the company. Seaport Research Partners raised Mattel from a “neutral” rating to a “buy” rating and set a $20.00 price target on the stock in a research note on Monday, October 12th. Finally, Citigroup raised their price target on Mattel from $15.00 to $17.00 and gave the stock a “neutral” rating in a research note on Tuesday, October 13th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Mattel has a consensus rating of “Hold” and a consensus price target of $18.00.

Insiders Place Their Bets

In related news, EVP Roberto Isaias sold 39,083 shares of the stock in a transaction 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 completion of the sale, the executive vice president directly owned 144,390 shares in the company, valued at approximately $2,168,737.80. This represents a 21.30% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.90% of the company’s stock.

Key Stories Impacting Mattel

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Mattel reported third-quarter adjusted earnings of $1.30 per share, above the $0.94 consensus estimate. Mattel Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Steve Totzke will become president and COO on November 11, overseeing Mattel’s brands, sales and commercial operations. Roberto Stanichi is leaving to pursue another opportunity; the leadership changes could affect execution as the company works to improve performance. Mattel leadership announcement
• Negative Sentiment: Third-quarter revenue was $1.81 billion, below analysts’ $1.84 billion estimate. Mattel also lowered its 2026 forecasts for net sales, adjusted operating income and earnings per share, a concern heading into the holiday season. Reuters: Mattel cuts annual forecasts
• Negative Sentiment: Tariff refunds boosted margins, tempering the quality of the earnings beat. The lower outlook and sales shortfall appear to have outweighed the stronger-than-expected EPS result. Barron’s: Mattel’s Struggles Continue

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.