Mattel ( NASDAQ: MAT ) stock slid sharply in Tuesday’s extended session after pulling back its full-year profit guidance.
For the third quarter, the Barbie-manufacturer managed to exceed bottom line expectations and only missed revenue estimates narrowly. Additionally, a 50 basis point increase in adjusted gross margins from the prior year to 48.3% despite inflationary pressures came in 80 basis points above consensus.
“Our results reflect the resilience of our diversified portfolio and the success in executing our strategy, despite the challenging macroeconomic environment,” CEO Ynon Kreiz said. “We look forward to the all-important holiday season, and believe we are on track to achieve another growth year for the company.”
However, despite the maintenance of sales forecasts for the full-year, adjusted EPS forecasts were reeled in. Management now expects a range of $1.32 to $1.42 in earnings per share, down from the prior $1.42 to $1.48 guidance. Analysts had placed full-year EPS expectations at $1.49. Full year EBITDA guidance was also pared back to a range of $1.05B to $1.10B from the previous outlook of $1.1B to $1.125B.
“With respect to Mattel’s previously stated 2023 goals, given the increased volatility in the market as well as the revised 2022 outlook, the company is re-evaluating its expectations and will provide annual guidance for 2023 on its 2022 fourth quarter and full year earnings call,” the company stated. “The company expects to achieve top and bottom-line growth in 2023.”
Shares of the California-based toy manufacturer fell 3.89% in after hours trading on Tuesday.
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Mattel stock slips after paring full-year profit forecasts