Proactive Investors - Mattel, Inc (NASDAQ:MAT) is poised for a solid year ahead, despite the absence of last year’s boost from the Barbie movie, analysts believe.
The toy firm laid out expectations for adjusted per-share earnings to sit between US$1.35 and US$1.45 for the year ahead in fourth-quarter results on Thursday.
This would mark an increase from the US$1.23 per share seen in 2023, which came on the back of flat net sales of US$5.4 billion.
“Although Mattel faces tough comparables this year from the Barbie movie, we believe in the company's ability to grow its intellectual property-driven toy business and continue expanding its entertainment offering,” Bank of America (NYSE:BAC) analysts noted on the results.
Analysts from the bank reiterated Mattel’s ‘buy’ rating as a result, anticipating the shares to climb over 17% to US$22.
Mattel had missed expectations for the fourth quarter, with adjusted earnings per share of US$0.29 sitting below Bank of America’s predicted US$0.36.
This was up on the company’s US$0.18 earnings share reported in late 2022 though, with pre-tax earnings sitting 50% higher at US$234 million.
“We ended 2023 with the strongest balance sheet we have had in years, putting us in an excellent position to execute our strategy to grow Mattel’s intellectual property-driven toy business and expand our entertainment offering,” chief executive Ynon Kreiz commented.
“As we look to 2024, we believe we are very well positioned competitively and will continue to outpace the industry and gain market share.”