Shares of Mattel Inc. (NASDAQ: MAT) surged on Tuesday after the company reported better-than-expected second-quarter profit.
Mattel, maker of Barbie dolls, Hot Wheels toy cars and Fisher-Price toys, reported second-quarter net income of $96.2 million, or $0.28 per share, compared to $80.5 million, or $0.23 per share reported for the same period last year.
Analysts, on average, were expecting the toymaker to report profit of $0.21 per share for the second quarter.
MAT’s sales for the second quarter were flat at $1.16 billion. However, second-quarter sales still beat Street estimates of $1.13 billion.
Mattel’s gross sales in the North American region rose 1%. International gross sales fell 1%. Operating income for the second quarter of 2012 was $131.4 million, up from $109.3 million reported for the same period last year.
Bryan G. Stockton, CEO of Mattel, said that in the second quarter, the company delivered solid performance as it continued to build key momentum with key brands despite a continued cautious global retail environment and a strengthening U.S. dollar.
Stockton said that as MAT looks forward, it remains focused on executing its portfolio of strong brands, countries and customers to deliver in the all-important holiday season.
Mattel’s Board of Directors also approved a quarterly cash dividend of $0.31 per share for the third quarter. The company also said that during the second quarter it repurchased 70,000 shares of its common stock at a cost of approximately $2 million.
Mattel shares rose to an intra-day high of $34.59 on Tuesday before finishing the day 9.70% higher at $34.05 on above average volume of 13.13 million.
MAT shares have gained 22.66% so far this year, compared to a gain of 11.69% for the NASDAQ.
Recent Comments