MW Mattel stock rallies on upbeat profit outlook, despite expected tariff impact

By Bill Peters

Toy maker plans to buy back $600 million in stock this year

Shares of Mattel Inc. jumped after hours on Tuesday after the toy maker forecast an adjusted per-share profit for this year that came in above analysts' expectations, as it takes actions - including potential changes to its prices - to offset a fresh round of tariffs from President Donald Trump.

The company said it expects adjusted earnings per share of $1.66 to $1.72. That forecast was above FactSet estimates for $1.57. Mattel also said it was planning to buy back $600 million worth of stock this year.

The outlook, Mattel said, factored in "the anticipated impact of new U.S. tariffs on China, Mexico and Canada imports announced on February 1st," as well as actions the company planned to take to address the new duties, some of which have been put on hold for at least 30 days.

Those actions, Mattel said, included "leveraging the strength of our supply chain." But the company said its response could include actions related to "potential pricing."

Shares were up 9% after hours.

Trump over the weekend said the U.S. would put 25% tariffs on imports from Mexico and Canada, with a 10% additional tariff on imports from China. Energy from Canada would be taxed at 10%. Mexico and Canada on Monday worked out deals to keep those tariffs from taking hold for roughly another month.

Economists have said that Trump's tariffs - intended to extract concessions on trade and other issues from other nations - will likely force businesses to raise prices, as they pass on the extra costs of those import taxes on to shoppers. Some analysts have said that Mattel and its rival Hasbro Inc. $(HAS)$ weren't as vulnerable to tariffs as some of their rivals.

This is a developing story. Check back for updates.

-Bill Peters

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February 04, 2025 16:54 ET (21:54 GMT)

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