Shares of toy company (NASDAQ: MAT) jumped on Wednesday morning following its financial report for the fiscal first quarter of 2024. As of noon ET, Mattel stock was up almost 5%.

The stock market's positive reaction to Mattel's financial results is a little surprising. Q1 net sales were down 1% year over year to $810 million, which was below expectations. The company's gross margin had a strong improvement to 48%. Its net loss improved by $78 million compared to the prior-year period. But despite the profit improvements, it still had a Q1 net loss of $28 million.

In short, Mattel's financial results may have had some encouraging elements, but I wouldn't necessarily call them good.

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Source Fool.com