Mattel Shares Racing Higher After Big Earnings Beat

Mattel, Inc. MAT shares spiked higher following a surprise earnings beat after Thursday's close.

The toy manufacturer reported fourth-quarter earnings of 4 cents per share, which may not compare to the $(0.15) estimate. Sales came in at $1.524 billion, beating estimates by $84 million. Hot Wheels saw the highest full-year gross sales in the brands history.

“We remain focused on advancing our strategy to restore profitability and regain top-line growth in the short-to-mid-term and are laying the groundwork to capture the full value of our IP in the mid-to-long-term," said Ynon Kreiz, Chairman and CEO of Mattel.

"After three consecutive quarters of solid, disciplined execution, we are well on our way to becoming an IP-driven, high-performing toy company and creating long-term value for our shareholders. Among all the achievements in 2018, I would like to applaud our team for regaining the #1 toy company position globally in a year full of challenges and headwinds. This is a great moment to celebrate, before we go back and continue the hard work of implementing our multi-year turnaround.”

Highlights

• Barbie gross sales increased 12 percent year-over-year
• Hot Wheels gross sales increased 9 percent year-over-year
• Operating income of $107 million, an improvement of $358 million versus prior year

Matte shares were up 13.92 percent at $14.08 in after-hours trading.

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