Shares of Mattel (NASDAQ:MAT) plunged in after-hours trading after the company reported earnings for its fourth quarter of Fiscal Year 2022. Adjusted earnings per share came in at $0.18, which missed analysts’ consensus estimate of $0.29 per share. Sales decreased by 22.2% year-over-year, with revenue hitting $1.4 billion. This missed analysts’ expectations of $1.68 billion.
However, Mattel announced that it’s increasing its cost-saving program target to $300 million. In addition, there is $200 million worth of stock buybacks remaining.
Looking forward, management expects revenue and adjusted EPS for Fiscal Year 2023 to be roughly $5.44 billion and $1.10 to $1.20, respectively. For reference, analysts were expecting $5.92 billion in revenue and an adjusted EPS of $1.66.
Overall, Wall Street has a consensus price target of $25.20 on MAT stock, implying 22.93% upside potential, as indicated by the graphic above.
