Mattel Stock Falls After Beat-and-Raise Earnings

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Mattel
‘s third-quarter earnings barreled past expectations and management raised its profit forecast for the fiscal year. Barbie helped.

The toy maker posted adjusted earnings of $1.08 a share, while the consensus call among analysts tracked by FactSet was for 86 cents. Sales of $1.92 billion were up 7% year over year in constant-currency terms, while Wall Street had expected $1.84 billion.

Gross billings for dolls rose 24% in constant currency compared with the previous year, Mattel (ticker: MAT) said, driven by growth in Barbie, Disney Princesses, and Monster High.

“Our results benefited from the success of the Barbie movie, which became a global cultural phenomenon, and marked a key milestone for Mattel,” said CEO Ynon Kreiz.

The company now expects adjusted earnings per share to range between $1.15 and $1.25, higher than past projections for $1.10 to $1.20. Analysts were forecasting earnings of $1.20 a share.

While shares of Mattel initially ticked up following the report, they were down 6.7% in after-hours trading.

Write to Sabrina Escobar at [email protected]

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