Mattel Inc (NASDAQ: MAT) shares are up more than 5.0% on Friday after the toy company reported market-beating results for its fiscal third quarter and raised its guidance for the full year.
Highlights from CEO Kreiz interview with Bloomberg
In an interview with Bloomberg, CEO Ynon Kreiz agreed that Mattel faced supply chain constraints in the recent quarter but said the company was able to work through them.
We anticipated short supply and longer lead times and factored that into our planning with very specific mitigating actions. Our scale expertise and flexible supply chain model that we restructured over the last three years is played to our advantage. We are now ready for a strong holiday season.
Kreiz also confirmed that inflationary pressures were weighing on profitability, but the company still raised guidance on strong consumer demand and a range of new products for the children this holiday season.
Q3 financial results
Mattel said it earned $813 million in Q3 that translates to $2.29 per share. In the same quarter last year, its earnings were capped at a sharply lower $311 million or 89 cents per share. Adjusted for nonrecurring items, the U.S. firm earned 84 cents a share.
Mattel generated $1.76 billion in sales that represents an annualised growth of 8.0%. Sales were up 12% in North America. According to FactSet, experts had forecast 72 cents of adjusted EPS on $1.69 billion in sales.
For the full financial year, Mattel now forecasts its net sales to climb by 15% versus up to 14% it had guided for earlier. The Nasdaq-listed company expects up to $925 million in adjusted EBITDA this year and is confident it’ll top $1.0 billion in 2022, as per the earnings press release.
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