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 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%.

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 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.