Shares of Mattel, Inc. (MAT) - Get Report rose in after-hours trading Tuesday after the company posted better-than-expected financial results and said it has concluded an investigation into its accounting practices. The stock gained $2.08, or 20%, to $12.64 in after-hours action.
Mattel reported sales rose 3% in the quarter to $1.48 billion boosted by sales of its Barbie brand and BTS dolls based on a Korean boy band. Analysts were looking for a decline of 0.5%. Earnings per share came in at 26 cents, vs. estimates of 19 cents.
Separately the company said it had concluded an internal probe of its accounting practices prompted by a whistleblower letter earlier this year.
"The investigation determined that income tax expense was understated by $109 million in the third quarter of 2017, and overstated by $109 million in the fourth quarter of 2017, with no impact for the full year," the company said in a statement. "The errors were non-cash, did not affect operating income or EBITDA, and had no impact on Mattel's full-year financial results for 2017 or subsequent periods," it added.
Chief Financial Officer Joseph Euteneuer is leaving the company, but will remain for as long as six months while the search for a new CFO is conducted, the company said.
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