Mattel (NASDAQ:MAT) reported better-than-expected second-quarter earnings on Tuesday. The Barbie and Hot Wheels toy maker said demand for its array of toddler toys and American Girls dolls and tighter cost-management helped offset unfavorable currency conditions.
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Mattel spent less on producing and marketing its toys during the quarter, which helped keep costs low in the face of soft demand and a strong dollar that lowered the value it received from international sales.
The El Segundo, Calif.-based company reported net income of $96.2 million, or 28 cents a share, compared with a year-earlier $80.5 million, or 23 cents. Analysts on average were looking for profit of just 21 cents.
Revenue for the three-month period was $1.16 billion, flat year-over-year on unfavorable exchange rates, but ahead of the average analyst estimates of $1.13 billion.
A slight increase in sales in Mattel’s Fisher-Price and American Girls Brands helped offset a 1% drop in Mattel Girls & Boys brands. Mattel CEO Bryan Stockton said sales performance reflected demand for Barbie, Monster High, American Girls and Hot Wheels toys as well as products related to the new Batman – The Dark Night Rises movie.
“As we look forward, we remain focused on executing our portfolio of strong brands, countries and customers to deliver in the all-important holiday season,” Stockton said in a statement accompanying the report.
Mattel’s board of directors also announced on Tuesday a third-quarter cash dividend of 31 cents, payable on Sept. 21 to shareholders of record on August 29.
Shares of the world's largest toy maker leaped 10% in morning trade to $33.89 on the Nasdaq Stock Market.