Toying With Expectations: Mattel's Q3 Miss Leads To Price Target Tweaks

Mattel, Inc. (NASDAQ:MAT) shares are trading higher on Thursday. Analysts adjusted the company’s price target following the third-quarter results reported on Wednesday.

Mattel reported EPS of $1.09 per share, which beat the analyst consensus estimate of 95 cents. Quarterly revenue came in at $1.843 billion, which missed the analyst consensus estimate of $1.858 billion.

Mattel revised FY24 net sales guidance to comparable-slightly down in constant currency while maintaining adjusted EPS outlook at $1.35 and $1.45 versus the $1.44 estimate.

Morgan Stanley analyst Megan C Alexander increased the price target to $22 from $21 and reiterated the Equal-weight rating.

The analyst writes that strong third-quarter results were slightly overshadowed by fourth-quarter EPS guidance, which is implied to be well below expectations.

While this could be a conservative estimate, it’s too soon to assess, especially with critical selling weeks approaching amid a shorter holiday season, an impending election, and ongoing consumer uncertainty, adds the analyst.

The analyst says that while they still anticipate demand drivers to strengthen in 2025, particularly with potential tent-pole movie releases, it’s too early to make ...