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Mattel Gears Up to Post Q2 Earnings: What Lies Ahead for the Stock?

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Key Takeaways

  • MAT is projected to post Q2 EPS of $0.16 on $1.08B in revenues, down slightly from the prior year.
  • Entertainment tie-ins and core brands like Hot Wheels and UNO may have supported Q2 performance.
  • Input inflation and cautious retail orders could limit MAT's margin expansion in the quarter.

Mattel, Inc. (MAT - Free Report) is scheduled to report second-quarter 2025 results on July 23, after the closing bell.

MAT’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 41.2%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Trend in Estimate Revision of MAT

The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is pegged at 16 cents, indicating a decline of 15.8% from 19 cents reported in the year-ago quarter.

Mattel, Inc. Price and EPS Surprise

Mattel, Inc. Price and EPS Surprise

Mattel, Inc. price-eps-surprise | Mattel, Inc. Quote

For revenues, the consensus mark is pegged at nearly $1.08 billion. The metric suggests a fall of 0.1% from the year-ago quarter’s figure.

Let’s take a look at how things have shaped up in the quarter.

Factors Likely to Shape Mattel’s Q2 2025 Results

Mattel’s second-quarter performance is expected to have reflected early strength from key entertainment tie-ins and solid brand traction across action figures, vehicles and games. Product launches tied to Jurassic World Rebirth and the Minecraft movie likely served as revenue catalysts in the to-be-reported quarter. Strategic execution around cross-platform content, merchandising initiatives and diversified sourcing may have supported the company’s performance in the quarter under review.

The early sell-through of licensed products, particularly in the action figures category, is likely to have aided Mattel’s top line. Growth in core brands such as Hot Wheels and UNO — supported by expanded collector sets and innovation in digital gaming — may have driven incremental shelf presence and consumer engagement. Meanwhile, the rollout of new building sets through the Mattel Brick Shop and continued demand for lower-priced SKUs likely helped mitigate pricing sensitivity amid macro uncertainty.

However, certain fundamentals may have constrained upside potential. Retailers, facing evolving trade policy dynamics and uncertain consumer demand, may have adopted more cautious ordering behavior during the quarter. Direct import shipments in particular may have faced timing-related headwinds. Additionally, softness in the infant and toddler segments, particularly due to planned product line exits, may have limited growth in the preschool category.

Mattel’s second-quarter margins are expected to have faced moderate pressure due to input cost inflation, ongoing supply chain adjustments and cautious retail promotion strategies. While the company’s Optimizing for Profitable Growth initiative continues to yield structural cost savings — with an increased full-year 2025 target of $80 million — elevated labor and logistics expenses may have weighed on gross profitability.

While MAT expects to fully offset the potential impact of tariffs by the second half of the year, it may have reported preparatory pricing, merchandising and inventory management efforts that temporarily constrained second-quarter margin growth. The absence of full-year guidance reflects the company’s cautious approach amid a fluid operating backdrop.

What Our Model Says About MAT Stock

Our proven model does not conclusively predict an earnings beat for Mattel this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. However, that is not the case here.

Earnings ESP for MAT: Mattel has an Earnings ESP of -1.05%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Mattel’s Zacks Rank: The company has a Zacks Rank #3 at present.

Stocks Poised to Beat on Earnings

Here are some stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model indicates they have the right combination of elements to post an earnings beat.

MGM Resorts International (MGM - Free Report) has an Earnings ESP of +2.45% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

MGM Resorts is expected to register a 36.1% decline in earnings for the to-be-reported quarter. MGM Resorts reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 25.5%.

Boyd Gaming Corporation (BYD - Free Report) currently has an Earnings ESP of +0.81% and a Zacks Rank of 3.

Boyd Gaming earnings for the to-be-reported quarter are expected to increase 5.1%. Boyd Gaming reported better-than-expected earnings in each of the trailing four quarters, the average surprise being 8%.

PENN Entertainment, Inc. (PENN - Free Report) currently has an Earnings ESP of +26.91% and a Zacks Rank of 3.

PENN Entertainment’s earnings for the to-be-reported quarter are expected to increase 61.1%. PENN reported better-than-expected earnings in three of the trailing four quarters and missed on one occasion, the average surprise being 13.5%.

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