Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Mattel (NASDAQ: MAT) and its peers.

The toys and electronics industry presents both opportunities and challenges for investors. Established companies often enjoy strong brand recognition and customer loyalty while smaller players can carve out a niche if they develop a viral, hit new product. The downside, however, is that success can be short-lived because the industry is very competitive: the barriers to entry for developing a new toy are low, which can lead to pricing pressures and reduced profit margins, and the rapid pace of technological advancements necessitates continuous product updates, increasing research and development costs, and shortening product life cycles for electronics companies. Furthermore, these players must navigate various regulatory requirements, especially regarding product safety, which can pose operational challenges and potential legal risks.

The 4 toys and electronics stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

Luckily, toys and electronics stocks have performed well with share prices up 21.2% on average since the latest earnings results.

Mattel (NASDAQ: MAT)

Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ: MAT) is a global children's entertainment company specializing in the design and production of consumer products.

Mattel reported revenues of $1.74 billion, down 5.9% year on year. This print fell short of analysts’ expectations by 5.5%. Overall, it was a softer quarter for the company with a significant miss of analysts’ revenue and EPS estimates.

Ynon Kreiz, Chairman and CEO of Mattel, said: “While our US business was challenged in the third quarter by industry-wide shifts in retailer ordering patterns, the fundamentals of our business are strong, with growth in consumer demand for our products across every region. Since the beginning of the fourth quarter, orders from retailers in the US have accelerated significantly and our POS is growing. Looking into the balance of the year, we expect a good holiday season for Mattel and strong topline growth in the fourth quarter. We are reiterating our full year 2025 guidance and are advancing our strategy to grow our IP-driven toy business and expand our entertainment offering.”

Mattel delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 12% since reporting and currently trades at $21.07.

Read our full report on Mattel here, it’s free.

Best Q3: Funko (NASDAQ: FNKO)

Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ: FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.

Funko reported revenues of $250.9 million, down 14.3% year on year, falling short of analysts’ expectations by 4.2%. However, the business still had a very strong quarter with a beat of analysts’ EPS and EBITDA estimates.

The market seems happy with the results as the stock is up 39.4% since reporting. It currently trades at $4.21.

Is now the time to buy Funko? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: Bark (NYSE: BARK)

Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.

Bark reported revenues of $107 million, down 15.2% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Bark delivered the slowest revenue growth in the group. Interestingly, the stock is up 14.7% since the results and currently trades at $0.91.

Read our full analysis of Bark’s results here.

Hasbro (NASDAQ: HAS)

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Hasbro reported revenues of $1.39 billion, up 8.3% year on year. This print topped analysts’ expectations by 3.2%. It was a strong quarter as it also produced a decent beat of analysts’ Wizards & Digital Gaming revenue estimates and a decent beat of analysts’ revenue estimates.

Hasbro delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is up 18.6% since reporting and currently trades at $89.18.

Read our full, actionable report on Hasbro here, it’s free.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.