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EL SEGUNDO, Calif. - Mattel, Inc. (NASDAQ: MAT), a toy manufacturer with a market capitalization of $7.1 billion and currently trading near its 52-week high, and Warner Bros. Discovery (NASDAQ:WBD) Global Consumer Products have entered into a multi-year global licensing agreement, granting Mattel the rights to develop a comprehensive range of products inspired by DC’s universe of characters. According to InvestingPro analysis, Mattel shows strong financial health with a robust current ratio of 2.38. Starting in the second half of 2026, Mattel will have the rights to create action figures, playsets, accessories, role play items, and collectibles for adults featuring characters such as Batman, Superman, Wonder Woman, The Joker, and Harley Quinn. This strategic move comes as Mattel maintains strong operational performance, with a healthy gross profit margin of 51% and positive analyst sentiment, as revealed in InvestingPro’s detailed analysis.
The partnership is set to leverage Mattel’s "Playbook" approach to brand management, which focuses on product design and innovation. Nick Karamanos, Senior Vice President of Entertainment Partnerships at Mattel, expressed enthusiasm for bringing DC characters to life across various channels, aiming to engage fans and collectors of all ages.
Warner Bros. Discovery sees the partnership as a celebration of DC’s legacy and its new chapter of storytelling across different media, according to Robert Oberschelp, Head of Warner Bros. Discovery Global Consumer Products. The collaboration is expected to produce new offerings that honor DC’s history and future narratives.
This agreement builds on an existing relationship between the two companies, which includes more than 30 brands and franchises from Warner Bros. Discovery’s library, spanning categories like preschool, plush, dolls, vehicles, games, and novelty toys.
Mattel, a global leader in toy manufacturing and family entertainment, owns a portfolio of franchise brands including Barbie, Hot Wheels, Fisher-Price, and many others. The company’s products are sold through leading retail and e-commerce companies worldwide. With a P/E ratio of 13.3 and year-to-date returns of nearly 20%, Mattel demonstrates solid market performance. For deeper insights into Mattel’s financial health and growth potential, including additional ProTips and comprehensive analysis, visit InvestingPro.
Warner Bros. Discovery Global Consumer Products, a division within Warner Bros. Discovery’s Revenue & Strategy division, connects fans globally with its entertainment brands through licensing and merchandising programs.
This partnership announcement is based on a press release statement and is intended to provide factual information regarding the business collaboration between Mattel and Warner Bros. Discovery Global Consumer Products.
In other recent news, Mattel Inc (NASDAQ:MAT). has reported a strong performance in its fourth-quarter earnings for 2024, surpassing expectations with a revenue of $1.65 billion and an Adjusted Earnings Per Share (EPS) of $0.35, outperforming consensus estimates. Analysts from UBS, DA Davidson, CFRA, Goldman Sachs, and Jefferies have responded positively, with several raising their price targets and ratings. UBS increased its price target to $29, while DA Davidson set a new target at $30, citing a 3% sales increase and a 10% rise in operating profit. CFRA upgraded Mattel’s stock from Hold to Buy, raising the price target to $26, and highlighted a $600 million share buyback program.
Goldman Sachs raised its price target to $24, emphasizing Mattel’s improved margins and supply chain efficiencies. Jefferies also upgraded its rating to Buy, setting a price target of $28, and noted Mattel’s potential to capture market share with new theatrical releases and partnerships. Mattel’s guidance for 2025 includes a projected 2-3% sales growth, with expectations of stable or slightly increasing toy industry revenue. The company aims to repurchase $600 million worth of shares in 2025, adding to the $400 million repurchased in 2024. These developments reflect a positive outlook from analysts, with several firms adjusting their EPS estimates upwards for 2025 and 2026.
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