Mattel Inc. ( NASDAQ: MAT ) slid past consensus estimates with its Q2 earnings report on broad sales strength. The toy giant also backed guidance for full-year adjusted EBITDA of $1.10 to $1.13 vs. $1.12 consensus
Net sales jumped 30% in the North America segment as reported and in constant currency. Gross billings were up 30% as reported and in constant currency.
Net sales in the international segment increased 12% as reported, and 20% in constant currency.
Category strength was seen with vehicles as global gross billings move up 23% to $328M as reported and were up 28% in constant currency. That growth saw primarily driven by Hot Wheels.
Adjusted EBITDA soared 42% year-over-year during the quarter to $185M from the $130M churned up a year ago.
Adjusted gross margin decreased to 44.9% from 47.5% a year ago and barely missed the consensus estimate of 45.0%. The decrease in the margin rate was primarily due to input cost inflation, other supply chain costs, and increased royalty expense, partially offset by pricing, favorable fixed cost absorption, and savings from the Optimizing for Growth program.
Shares of Mattel ( MAT ) fell 4.22% in after-hours trading to $23.15 following the earnings topper. Mattel was up 2.85% during the regular session ahead of the report.
The Seeking Alpha Quant Rating on Mattel flipped to Strong Buy on June 27.
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Mattel falls after earnings topper is overshadowed by worries over margin