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Mattel First-Quarter Results Beat Estimates, Led by Barbie

The toymaking titan reported a narrowed net loss on 47% higher revenue, with both figures stronger than Wall Street expected.
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Shares of Mattel  (MAT) - Get Mattel Inc. Report jumped after the toy titan reported a narrowed net loss on 47% higher revenue, with dolls like Barbie and infant-toddler-preschool products including Fisher-Price leading the sales report.

Both figures were stronger than Wall Street analysts expected.

For the quarter the El Segundo, Calif., company earned posted a loss of 33 cents a share compared with a loss of 61 cents a share in the year-earlier quarter. The latest adjusted loss was a dime a share. 

Revenue reached $874.2 million from $594.1 million.

A survey of analysts by FactSet produced consensus estimates of a GAAP loss of 38 cents a share, or an adjusted loss of 35 cents, on revenue of $684.2 million.

At last check Mattel shares were trading up 8.2% at $22.60. They finished regular Thursday up 0.1% at $20.88.

Gross-profit margin widened 3.8 percentage points to 46.8%.

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The company said worldwide gross billings for its Barbie doll line rose nearly 90% to $276.2 million in the quarter.

In the quarter Mattel also closed a $1.2 billion refinancing, reducing its interest costs by $40 million a year.

RealMoney Chartist Bruce Kamich: Mattel Must Consolidate to Renew Strength

In late April Berenberg analyst David Beckel upgraded Mattel to buy from hold and lifted his price target on the shares to $25 from $14.

Beckel said that both Mattel and peer Hasbro  (HAS) - Get Hasbro Inc. Report have "come through the pandemic stronger than they entered."

Both companies' strategies and competitive strengths are unique, and both 'can win," the analyst wrote. He also has a buy rating on Hasbro.

A week prior Stifel analyst Drew Crum had affirmed a hold rating on Mattel while lifting his price target to $22 from $19.50.

In February Mattel offered a strong earnings outlook for the year and beyond and Citigroup raised its rating on the stock to buy from neutral.