• Mattel's projected EPS is -$0.11 with revenue around $791.5 million.
• The company exceeded earnings expectations by 52.2% in the previous quarter but faces challenges ahead.
• Financial ratios such as P/E ratio of 10.09 and debt-to-equity ratio of 1.19 provide insight into Mattel's valuation and financial health.

Mattel, Inc. (NASDAQ:MAT) is a well-known toy manufacturer, famous for brands like Barbie, Hot Wheels, and Fisher-Price. As it prepares to release its quarterly earnings on May 5, 2025, analysts are keenly observing the company's financial health. Wall Street estimates an earnings per share (EPS) of -$0.11, with projected revenue around $791.5 million.

In the previous quarter, Mattel exceeded earnings expectations by 52.2%, although revenues fell short by 0.5%. Despite this, both earnings and revenues grew by 20.7% and 2%, respectively, compared to the same period last year. This consistent performance has led to an average earnings surprise of 37.6% over the last four quarters, as highlighted by Zacks Investment Research.

However, the upcoming quarter presents challenges. The Zacks Consensus Estimate for Mattel's loss has increased to $0.11 per share, indicating a 120% year-over-year decline. Revenue is expected to decrease by 1.2% to $791.5 million. Weak performance from one of Mattel's top three power brands may offset growth in other areas, impacting overall results.

Mattel's financial ratios provide additional context. With a P/E ratio of 10.09, the market values the company's earnings moderately. The price-to-sales ratio of 0.98 suggests the stock trades at less than one times its annual sales. The enterprise value to sales ratio of 1.22 reflects the company's total valuation relative to sales.

The enterprise value to operating cash flow ratio stands at 8.23, indicating the company's valuation in relation to its cash flow from operations. Mattel's earnings yield of 9.92% offers insight into shareholder returns. A debt-to-equity ratio of 1.19 shows the proportion of debt financing, while a current ratio of 2.38 suggests strong short-term financial health.