Mattel Inc (MAT: NSD) reported mixed results for its first quarter of 2024. While the company’s net sales fell short of expectations, a narrower loss than anticipated sent the stock price upto 2.7% in after-hours trading.
Key Insights from Mattel’s Q1 Report:
Mattel’s net sales for Q1 came in at $809.5 million, a decrease of 1% year-over-year and below analysts’ estimates of $833.5 million. The company’s worldwide gross billings for dolls, a key product category, also declined by 4% year-over-year to $295 million.
Despite the sales dip, investors reacted positively to Mattel’s narrower loss. The company reported an adjusted loss of $0.05 per share in Q1, a significant improvement compared to the previous quarter’s loss of $0.24 per share. Additionally, the loss came in lower than the analyst’s forecast of a loss of $0.13 per share.
Stock Target Advisor’s Take on Mattle:
Stock Target Advisor’s gives a Slightly Bullish rating with the target price is $21.75. The projected price change in 12 months by Stock Target Advisor is 16.12%. Stock Target Advisor analysis is is based on 9 positive signals and 6 negative signals.
Currently, 6 analysts are covering MAT and providing the average analyst target price is USD 22.25 over the next 12 months. The last closing of Mattel Inc.’s stock price was USD 18.73. MAT stock price has changed by +0.76% over the past week, -0.71% over the past month, and +11.75% over the last year.
Conclusion:
Mattel’s Q1 earnings report presented a mixed bag. The company’s sales decline is a cause for concern, but the narrower loss indicates progress in improving profitability. Investors appear to be cautiously optimistic about Mattel’s future prospects, as evidenced by the after-hours stock price increase.
