Mattel (NASDAQ:MAT) is a California-based toy and family entertainment company. It is engaged in the design, manufacture, and marketing of toys and consumer products in North America, Latin America, Europe, and elsewhere around the globe. Shares of Mattel have dropped 7.15% month-over-month as of close on Wednesday, October 23, 2024. Meanwhile, the stock is down 5.27% in the year-to-date period.
Shares of Mattel were up over 3% in after-hours trading following the release of the company’s third-quarter (Q3) fiscal 2024 earnings. It remains to be seen whether these gains will hold when markets open on Thursday, as the earnings report was a mixed bag.
The company reported net sales of $1.84 billion in Q3 FY2024 – down 4% compared to the previous year. Meanwhile, operating income rose $14 million from the previous year to $488 million. Net income jumped by $226 million to $372 million. Moreover, adjusted earnings per share (EPS) were reported at $1.14 – up form $1.08 per share in Q3 FY2023.
Adjusted EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This metric seeks to give a better picture of a company’s profitability. Mattel reported adjusted EBITDA of $584 million in Q3 2024 – up $5 million compared to the prior year.
Shares of Mattel currently possess a price-to-earnings ratio of 19. That puts the toy manufacturer’s stock in favourable value territory at the time of this writing.
