Mattel Inc. climbed as much as 8.3% in extended trading after reporting second-quarter results that soared past analysts’ expectations amid an ongoing toy-buying boom.
The world’s second-largest toymaker said Tuesday revenue rose 40% to $1.03 billion, beating the $875.8 million average of estimates compiled by Bloomberg. Mattel reported profit of 3 cents a share, excluding some items, better than the 6-cent loss analysts expected.
Chief Executive Officer Ynon Kreiz raised his forecast for the year, predicting sales will climb by 12% to 14%. The company expects $875 million to $900 million in earnings before interest, taxes, depreciation and amortization. Revenue next year and in 2023 should rise by mid-single-digit percentages, he said, with Ebitda exceeding $1 billion in 2022.
“We were up in every region and in all the key categories,” Kreiz said in an interview. “We do feel great about the brand momentum and retail and promotional plans heading toward holiday season.”
The results show brands such as Barbie and Hot Wheels continue to resonate with a new generations of kids: Global billings for dolls grew 51% while toy vehicles expanded 68%. The infant, toddler and preschool category grew 15%. Action-figure sales benefited from a new “Masters of the Universe” TV show airing on Netflix Inc., he said.
Toy sales slumped at the start of the pandemic but began to climb in the second half of last year as parents with children stuck at home sought ways to entertain them. Rival Hasbro Inc. on Monday said its sales jumped 54% to $1.32 billion in the second quarter.
Mattel, based El Segundo, California, has worked on improving profitability through cost cuts and other steps. Ebitda rose more than fourfold to $130.6 million in the quarter.
Shares of Mattel reached as high as $22.25 in after hours trading. The stock had climbed 18% this year to close at $20.54 on Tuesday, exceeding Hasbro’s 8.4% rise.