EL SEGUNDO, Calif. - Mattel, Inc. (NASDAQ: NASDAQ:MAT) has reported a Q2 EPS of $0.19, which was $0.01 higher than the analyst estimate of $0.18. Following the earnings release, Mattel's stock experienced a 1.5% uptick.
However, revenue for the quarter was slightly below the consensus estimate, coming in at $1.08 billion against the expected $1.1 billion.
Despite a slight 1% dip in net sales compared to the previous year, Mattel's gross margin saw a notable increase of 410 basis points, reaching 49.2%. This improvement in profitability was attributed to cost savings from the Optimizing for Profitable Growth program, cost deflation, and lower inventory management costs.
Chairman and CEO Ynon Kreiz commented on the results, stating, "This was a good quarter for Mattel, where we achieved significant gross margin expansion, and growth in Adjusted EBITDA and Adjusted EPS. We further strengthened our balance sheet and more than doubled free cash flow in the trailing twelve-month period." Kreiz also highlighted Mattel's strong position for the second half of the year, with new product innovations and increased retail support.
Looking ahead, Mattel has reiterated its full-year 2024 guidance, projecting an adjusted EPS range of $1.35 to $1.45, which aligns with the midpoint of analyst consensus estimates of $1.41. This guidance reflects the company's expectations for continued profitability and sales growth in 2025.
CFO Anthony DiSilvestro added to the positive outlook, stating, "Mattel achieved another quarter of increased profitability. We continue to generate significant cash flow and are executing our capital allocation priorities, with the expectation to continue share repurchases in the second half of the year."
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