Mattel Inc. stock jumped more than 6% late Thursday after the toy maker reported quarterly sales and profit that topped Wall Street expectations and raised its sales guidance for the year, counting on a “strong holiday season” ahead.
Mattel
MAT,
earned $813 million, or $2.29 a share, in the third quarter, compared with earnings of $311 million, or 89 cents a share, in the year-ago period. Adjusted for one-time items, the toy maker earned 84 cents a share.
Sales rose 8% to $1.76 billion, from $1.64 billion a year ago, and included a 12% increase in North America, driven by rising sales of action figures, games, dolls, toy vehicles and other toys, the company said.
Related: The next Barbie movie will be directed by Oscar nominee Greta Gerwig
Analysts polled by FactSet expected adjusted earnings of 72 cents a share on sales of $1.69 billion.
“This was another strong quarter for Mattel, with increased consumer demand for our products and results exceeding expectations,” Chief Executive Ynon Kreiz said in a statement. Mattel “successfully navigated ongoing global supply-chain disruption,” grew its sales and continued to gain market share, Kreiz said.
“We expect to grow for the balance of the year and have a strong holiday season,” the executive said.
Mattel guided for full-year net sales up 15% this year, compared with a previous guidance of sales growth between 12% and 14%. Mattel’s 2020 sales reached $4.6 billion.
Shares of Mattel have gained about 17% so far this year, compared with gains of around 21% for the S&P 500 index
SPX,
This post was originally published on Market Watch
