2023-10-25 17:58:56 ET
Mattel ( NASDAQ: MAT ) on Wednesday smashed Q3 top and bottom line estimates, helped by a surge in sales of dolls amid increased demand due to the success of the record-breaking Barbie movie.
MAT earned $1.08 per share on an adjusted basis on revenue of $1.92B. Analysts were expecting the toymaker to earn 86 cents per share on revenue of $1.81B.
Key sales metric gross billings, or the amount invoiced to customers, came in at $2.12B for Q3, up 9% Y/Y. Gross billings for the Barbie brand surged 16% Y/Y to $605.1M, helping overall gross billings for the dolls unit to jump 27% Y/Y to $884.5M.
"Our results benefited from the success of the Barbie movie, which became a global cultural phenomenon, and marked a key milestone for Mattel ( MAT )," the company's top boss Ynon Kreiz said in a statement .
Barbie , co-written and directed by Greta Gerwig, was released earlier this year as part of a rare "double-feature" alongside Christopher Nolan's war biopic Oppenheimer . The event became a pop-culture phenomenon, with the film about the iconic doll eventually grossing over $1.4B worldwide and becoming the highest-earning film helmed solely by a woman.
James Zahn, editor-in-chief of leading U.S. toy trade publication, The Toy Book, weighed in on MAT's results: "Classic categories, including dolls and vehicles moved the needle back in the right direction amid a challenging year for Mattel ( MAT ) and the rest of the toy industry."
However, shares of MAT retreated nearly 7% to $18.75 in extended trading, after the toymaker logged an eight consecutive quarter of decline in gross billings for its American Girl segment.
Moreover, Mattel's ( MAT ) segment comprising action figures, building sets, games and other toys saw a 19% Y/Y fall in gross billings, primarily due to a hit to demand for action figures amid a mixed performance by superhero and animated films in 2022.
Turning to the company's outlook, Mattel ( MAT ) bumped up its full year guidance for adjusted gross margin and adjusted EBITDA. It also now sees adjusted earnings per share of $1.15 to $1.25, compared to a prior forecast of $1.10 to $1.20. The consensus EPS estimate is $1.21.
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- Mattel Q3 2023 Earnings Preview
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Mattel stock slips ~7% after hours as American Girl weakness offsets Barbie boost