A Barbie Rebound Helps Mattel Report 16% Higher Earnings
Toy maker Mattelreported third-quarter earnings this morning that came in ahead of Wall Street's expectations. The company saw quarterly sales grow by 6% globally, as each region of its business kicked in higher revenue. Overall, profit improved by 16%, to $1.21 a share.
Removing a tax benefit of $0.05 per share, earnings were $1.16 per share. Analysts had predicted earnings of $1.11 per share. Last year's third quarter notched $1.04 per share. Revenue for the El Segundo, Calif., company rose 6% to $2.21 billion from $2.08 billion. Wall Street expected $2.175 billion in revenue.
Mattel benefited from a 3% boost in Barbie sales, one of the company's biggest brands. That growth reversed the 12% dip in the brand that Mattel booked in the prior quarter. The company also saw strong sales of its American Girl brand, which grew by 20% this quarter and offset weaker results from its Hot Wheels and Fisher-Price products.
Looking ahead to the critical holiday shopping season, CEO Bryan Stockton sounded an optimistic note, saying, "[W]e have a strong lineup of innovative products, promotions and content, and we will continue to focus on execution to deliver growth and long-term shareholder value."
Mattel also announced that it repurchased 6.1 million of its own shares during the third quarter at a cost of approximately $259 million, and plans to pay its fourth-quarter dividend of $0.36 a share on Dec 13. That's the same dividend the company paid last quarter and works out to an annual payment of $1.44, yielding about 3.5% on yesterday's closing price.
-- Material from The Associated Press was used in this report.
The article A Barbie Rebound Helps Mattel Report 16% Higher Earnings originally appeared on Fool.com.Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Mattel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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