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Mattel

Mattel rises as Barbie sales boost Q3 profit

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Mattel Inc. (NASDAQ:MAT), the world’s largest toymaker, climbed in early trading after posting better-than-expected third-quarter earnings on a jump in Barbie and American girl sales.

Mattel advanced as much as 5.7 percent to before trading at $42.99, up 3.6 percent, at 9:41 a.m. in New York.

Net income in the quarter ended Sept. 30 increased 16 percent to $422.8 million, or $1.21 a share, from $365.9 million, or $1.04 a share, in the year-earlier period, the El Segundo, California-based company said in a statement today. 

Excluding a tax benefit of 5 cents per share, earnings were $1.16 per share. Analysts predicted earnings of $1.11 per share.

Mattel is working on pumping up sales amid sluggish growth of the toy industry in the U.S., the company’s largest market, as kids spend more time using electronic devices. 

Quarterly sales increased 6 percent to $2.21 billion from $2.08 billion a year ago. Analysts estimated $2.18 billion. 

Revenue from Barbie, its largest brand, grew 3 percent, after posting declines in the previous four quarters.  Sales of American Girl jumped 20 percent. 

"Mattel delivered growth in every region of the world, expanded our operating margins, further strengthened our balance sheet and returned more capital to our shareholders,"  Chief Executive Officer Bryan G. Stockton said in the statement.

In North America, gross sales rose 3 percent. International gross sales climbed 9 percent.

Mattel also announced a fourth-quarter dividend of 36 cents a share. The dividend will be paid on Dec. 13 to shareholders of record on Nov. 27.

Mattel sells its toys through retailers such as Wal-Mart Stores Inc. (NYSE:WMT), Toys R Us Inc, Target Corp. (NYSE:TGT) and Amazon.com Inc. (NASDAQ:AMZN) as well as through its own catalog and website.

The shares have gained 13 percent this year, compared with a 19 percent gain for the Standard & Poor’s 500 Index (INDEXSP:.INX).

Quick facts: Mattel

Price: $10.73

Market: NASDAQ
Market Cap: $3.71 billion
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