Mattel, the renowned toy maker, has surpassed expectations with its strong third-quarter earnings. The company also raised its profit forecast for the fiscal year, thanks in large part to the success of its iconic doll, Barbie.
In terms of adjusted earnings, Mattel posted $1.08 per share, surpassing the consensus estimate of 86 cents among analysts followed by FactSet. Furthermore, the company's sales of $1.92 billion marked a 7% increase compared to the previous year in constant-currency terms, surpassing Wall Street's expectation of $1.84 billion.
One of the driving factors behind this impressive performance was the notable growth in sales of dolls. In constant currency, doll sales saw a 24% increase from the previous year, fueled by the popularity of Barbie, Disney Princesses, and Monster High.
The success of the Barbie movie played a significant role in these results. It became a global cultural phenomenon and marked a significant milestone for Mattel, according to CEO Ynon Kreiz.
Looking ahead, Mattel has adjusted its earnings per share projection to a range between $1.15 and $1.25, higher than its previous forecast of $1.10 to $1.20. Analysts had anticipated earnings of $1.20 per share.
Although Mattel's stock initially experienced an upward tick following the earnings report, it later declined by 6.7% in after-hours trading.