BKNG Stock – Mattel Stock Is Soaring After Earnings Surprised
reported a surprise profit on an adjusted basis during the second quarter, sending shares higher in extended trading.
The toy maker (ticker: MAT) posted adjusted earnings of 3 cents a share, beating consensus estimates calling for a net loss of 5 cents a share, according to FactSet. That figure strips out about 5 cents a share from severance and restructuring expenses and expenses related to inclined sleeper recalls.
Mattel shares jumped 7% to $21.97 in after hours trading. The stock had already risen 81% in the past 12 months and 17% year-to-date through Tuesday’s close.
“Our overall performance this quarter and comprehensive topline growth is adding momentum to our transformation strategy,” CEO Ynon Kreiz said in the earnings release. “We are now firmly in growth mode and establishing Mattel as an IP-driven, high-performing toy company.”
The company said second-quarter gross margin jumped to 47.5% from 43.6% in 2020, though gains from fixed cost absorption related to high sales growth were partially offset by input cost inflation in costs of goods sold.
Action figures, building sets, games, and other category gross billings—an adjusted figure representing the amounts invoiced to customers—hit $258 million, though growth from Jurassic World, Masters of the Universe, WWE, and MEGA Bloks brands were partially offset by declines in games, including UNO.
Worldwide gross billings for dolls hit $395 million, with year-over-year growth of 51% driven by the Barbie, American Girl, Spirit, and Polly Pocket brands. In the infant, toddler, and preschool category, gross billings were up 15% to $229 million, driven by Fisher-price and Thomas & Friends brands.
During the earnings call, Kreiz raised the company’s outlook for net sales growth, adjusted for currency impacts, to be between 12% and 14%, compared with a prior range that topped out at 8%. The company also raised its full-year earnings before interest, taxes, depreciation, and amortization outlook to be between $875 million and $900 million, up from a prior range that topped out at $825 million. The company also expects mid-single-digit net sales growth in 2022 and 2023.
Write to Connor Smith at [email protected]