Earnings Results: Mattel stock rallies as toy maker sees ‘strong’ holiday season ahead

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.


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

This post was originally published on Market Watch

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