Mattel (NASDAQ:MAT) Shares Gap Down on Disappointing Earnings

Mattel, Inc. (NASDAQ:MAT)’s stock price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $21.06, but opened at $15.08. Mattel shares last traded at $15.6520, with a volume of 12,711,492 shares trading hands.

The company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.14). The business had revenue of $1.77 billion for the quarter, compared to analysts’ expectations of $1.85 billion. Mattel had a net margin of 7.44% and a return on equity of 20.82%. The firm’s quarterly revenue was up 7.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.35 earnings per share. Mattel has set its FY 2026 guidance at 1.180-1.300 EPS.

Mattel News Summary

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Mattel announced it will acquire full ownership of the Mattel163 mobile games studio, strengthening its digital-games pipeline — a strategic step to address a key weakness versus peers. Mattel to Acquire Full Ownership of Mattel163 Mobile Games Studio
• Positive Sentiment: Company reported year-over-year revenue growth (net sales up ~7%) and said it gained market share in key categories and regions — signs that some core businesses remain resilient. Mattel Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Unusual options activity showed elevated call buying into the print, indicating some traders were positioned for a rebound or volatility — not a clear directional signal for longer-term holders.
• Negative Sentiment: Q4 EPS of $0.39 missed consensus (~$0.53) and revenue of $1.77B came in below expectations; management cited softer December growth and markdowns as drivers of the miss. Mattel Q4 Earnings & Revenues Miss Estimates, Stock Down
• Negative Sentiment: Mattel set FY‑2026 EPS guidance of $1.18–$1.30, well below the Street (~$1.75), and said strategic investments will pressure near‑term profitability — the guidance cut is the principal driver of the selloff. Barbie maker Mattel forecasts annual profit below estimates on cautious consumer spending
• Negative Sentiment: Analyst and market reaction amplified the move: JPMorgan downgraded Mattel to underweight with a $14 target, and coverage compared Mattel’s outlook unfavorably to Hasbro’s stronger digital/gaming narrative. A tale of two toymakers: Mattel craters, while Hasbro’s digital pivot delivers
• Negative Sentiment: High trading volume and headlines describing the drop as the worst daily decline in decades intensified momentum selling—short-term technical and sentiment risk for holders. Mattel Stock Headed for Worst Day Since 1999

Analyst Ratings Changes

Several research firms have commented on MAT. JPMorgan Chase & Co. lowered shares of Mattel from a “neutral” rating to an “underweight” rating and set a $14.00 price objective for the company. in a research note on Wednesday. Morgan Stanley set a $18.00 price target on shares of Mattel in a report on Wednesday. Jefferies Financial Group reduced their price objective on shares of Mattel from $25.00 to $19.00 and set a “buy” rating on the stock in a research report on Wednesday. Seaport Research Partners upgraded Mattel to a “hold” rating in a research report on Monday, November 10th. Finally, Citigroup downgraded Mattel from a “buy” rating to a “neutral” rating and set a $16.00 price target on the stock. in a report on Wednesday. Three research analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, Mattel presently has an average rating of “Hold” and a consensus price target of $19.00.

Institutional Trading of Mattel

Several large investors have recently made changes to their positions in MAT. Public Employees Retirement System of Ohio raised its holdings in shares of Mattel by 0.6% during the third quarter. Public Employees Retirement System of Ohio now owns 100,310 shares of the company’s stock worth $1,688,000 after purchasing an additional 623 shares during the last quarter. State of Wyoming boosted its stake in shares of Mattel by 4.3% in the third quarter. State of Wyoming now owns 15,251 shares of the company’s stock worth $257,000 after buying an additional 634 shares during the last quarter. GAMMA Investing LLC grew its holdings in Mattel by 8.0% during the fourth quarter. GAMMA Investing LLC now owns 9,344 shares of the company’s stock worth $185,000 after acquiring an additional 693 shares during the period. Jones Financial Companies Lllp raised its position in Mattel by 12.6% during the third quarter. Jones Financial Companies Lllp now owns 6,687 shares of the company’s stock valued at $113,000 after acquiring an additional 747 shares in the last quarter. Finally, Sei Investments Co. lifted its holdings in Mattel by 1.7% in the second quarter. Sei Investments Co. now owns 45,736 shares of the company’s stock valued at $902,000 after acquiring an additional 758 shares during the period. 97.15% of the stock is owned by hedge funds and other institutional investors.

Mattel Trading Down 25.0%

The company has a current ratio of 1.60, a quick ratio of 1.18 and a debt-to-equity ratio of 0.77. The firm has a market cap of $4.91 billion, a PE ratio of 12.54, a price-to-earnings-growth ratio of 2.23 and a beta of 0.70. The company has a 50-day simple moving average of $20.65 and a 200 day simple moving average of $19.12.

About Mattel

Mattel, Inc is a leading global toy company headquartered in El Segundo, California. Founded in 1945 by Harold “Matt” Matson and Elliot and Ruth Handler, the company has grown into a major player in the toy and family products industry. Mattel designs, manufactures, and markets a broad range of toys, games and entertainment products under well-known brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO and Matchbox. In addition to its proprietary labels, Mattel holds licenses with global entertainment franchises, partnering with Disney, Warner Bros., WWE and other studios to create character-driven play experiences.