Mattel crushed second-quarter views late Thursday, with booming earnings and accelerating revenue growth. But MAT stock fell overnight on margin concerns.
Mattel Earnings
Mattel earnings skyrocketed 500% to 18 cents per share. Revenue grew 20% to $1.24 billion, the third straight quarter of faster top-line growth for Mattel, whose iconic portfolio of toys includes Barbie and Hot Wheels. Analysts had forecast Mattel earnings per share of 6 cents on revenue of $1.1 billion. MAT stock jumped during the day leading up to the announcement.
"The first half of the year was an outstanding period of growth for the company. We are benefiting from strong retail partnerships and look forward to meeting the projected increase in consumer demand for our product, as we enter the second half of the year and the all-important holiday season," CEO Ynon Kreiz said in the announcement.
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But Mattel's gross margin fell 310 basis points to 44.4% and adjusted gross margin fell 260 basis points to 44.9%.
Still, the company reiterated its full year guidance for 2022 and 2023. It projects 8% to 10% sales growth for the year and adjusted EPS of $1.42 to $1.48. For FY2023, Mattel expects high single digit revenue growth and EPS of $1.90 or greater.
MAT stock fell 1.9% in overnight trade. Shares had climbed 2.8% to 24.17 in Thursday's trading, part of a three-day run that reclaimed the 200-day and 50-day lines.
Mattel stock rose Thursday on news of a multi-year partnership with Elon Musk's SpaceX. Starting next year, Mattel will release a line of SpaceX-inspired toys and vehicles under its Matchbox brand.
Competitor Hasbro also beat earnings estimates when it reported on Tuesday. HAS stock rose 4.3% to 84.80 in Thursday's session.
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