Mattel Inc. (NASDAQ: MAT) announced its fourth-quarter earnings report on Monday and the results for earnings per share and revenue both beat analysts’ estimates.
The California-based company reported fourth-quarter earning per share of $0.63, against the consensus of $0.61, and revenue of $1.99 billion, better than the Street’s projection of $1.91 billion.
The strong earning report thanks to the improvement of its flagship Barbie business and Hot Wheels toys. The Barbie’s sales grew 1 percent in the fourth quarter.
The company had been making improvement for its toy Barbie since last year. The toymaker launched Barbie in various forms, with different skin tones, outfits, and hairstyles last year. Last week, it also introduced Barbie in three unique body shapes – curvy, tall, petite – to attract younger girls.
Mattel’s shares soared as much as 12.13 percent to $30 at 12:18 p.m. in New York. Mattel had dropped 1.5 percent this year and 12 percent in 2015. The valuation for Mattel was lower than Hasbro after that.
The company had been struggling in recent years. It lost market share to Lego and Hasbro. But Barbie’s latest sales increase may mark a turnaround for the company. The company named board member Chris Sinclair as Chief Executive Officer about a year ago. The new CEO leaded the company to focus back on the Barbie business.
“Interest in Barbie among moms and girls is improving,” Richard Dickson, Mattel’s chief operating officer, said during a call with analysts on Monday.
“2016 will have its challenges, particularly on the top line, but we do expect to make additional good progress on all fronts,” Sinclair said on the conference call. “I’m pleased with the progress to date.”