Mattel Shares Rise as Earnings Beat Street

Sales for Mattel ( MAT) slipped in the second quarter, but the home of such iconic toy brands like Barbie and Hot Wheels turned in a better-than-expected profit thanks to some cost-cutting moves.

The company posted profit of $21.5 million, or 6 cents a share, compared with profit of $11.8 million, or 3 cents a share, in the year-earlier period.

Shares in the company rose in the pre-market hours, and opened up more than 4% higher, to $16.91.

But sales underwhelmed, dropping 19% to $898.2 million, compared with $1.11 billion last year, thanks to an exchange rate hit and general lack of products tied to the summer movie season.

Mattel said domestic gross sales fell 12%, while international gross dropped 26%. Sales off of Barbie dropped 15%. Meanwhile, sales for toy cars like Hot Wheels and Matchbox, which were tied-in to the movie "Speed Racer" last year, fell 28%. Hot Wheels sales, alone, declined by 10%.

Sales for the Fisher-Price segment were down 14%, while sales from the American Girl line were flat.

On average, analysts anticipated Mattel to post break-even earnings on a per-share basis on $969.7 million in revenue.

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