Mattel beat expectations for sales and earnings in the third quarter but investors reacted by sending the stock price down more than 7% in after hours trading.
Mattel easily beat expectations for sales and earnings in the third quarter, and raised its earnings guidance for the full year, but the boost it got from the Barbie movie wasn’t enough to lift its stock price. Shares fell by more than 7% in after hours trading immediately following the earnings release.
The toymaker reported net sales of $1.92 million, up 7% in constant currency. Net sales rose 9% unadjusted for currency exchange. It reported adjusted earnings of $1.08 per share, beating consensus expectations for 86 cents per share. Mattel raised its earnings forecast for the year to between $1.15 and $1.25, up from the previous guidance of $1.10 to $1.20.
Mattel executives credit the Barbie movie, the year’s highest grossing film, with playing a big role in lifting sales and earnings.
“Our results benefited from the success of the Barbie movie, which became a global cultural phenomenon, and marked a key milestone for Mattel,” Mattel Chairman and CEO Ynon Kreiz said in announcing the results.
