Mattel Third-Quarter Profit Tops Estimates as Barbie Sales Rise
Stock Chart for Mattel Inc (MAT)
Mattel Inc. (MAT), the world’s largest toymaker, posted third-quarter earnings that topped analysts’ estimates as sales of Barbie and American Girl gained.
Net income in the three months ended Sept. 30 rose 16 percent to $422.8 million, or $1.21 a share, from $365.9 million, or $1.04, the El Segundo, California-based company said today in a statement. Analysts expected $1.12 a share, according to eight estimates compiled by Bloomberg. Third-quarter earnings included a tax benefit of 5 cents a share, Mattel said.
Chief Executive Officer Bryan Stockton has been trying to boost sales amid lackluster growth of the toy industry in the U.S., the company’s largest market, as kids spend more time using electronic devices. Many toymakers, including Mattel, have tried making products that incorporate devices such as Apple Inc.’s iPod with little success.
Stockton also has invested in Mattel’s technology infrastructure and top brands such as American Girl as a way to increase sales.
Sales rose 6 percent to $2.21 billion from $2.08 billion a year ago. Analysts estimated $2.18 billion. Revenue from Barbie, its largest brand, rose 3 percent.
Mattel dropped 0.9 percent to $41.55 yesterday in New York. The shares have increased 13 percent this year, compared with a 19 percent gain for the Standard & Poor’s 500 Index.
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