Mattel Q3 Earnings Beat Estimates, Lifts FY21 Sales Growth Outlook - Mattel (NASDAQ:MAT)

Mattel Inc MAT reported third-quarter FY21 sales growth of 8% year-on-year, to $1.76 billion, beating the analyst consensus of $1.68 billion.
North America segment sales rose 12% Y/Y, and International sales grew 2%.
Worldwide Gross Billings for Dolls increased 4% Y/Y, Infant, Toddler, and Preschool were flat, Vehicles improved 6%, and for Action Figures, Building Sets, Games, and Other rose 26% as reported.
Gross profit rose 2% Y/Y to $842.5 million, and the gross margin contracted 280 basis points Y/Y to 47.8%.
The operating margin contracted 110 basis points to 22.1%, and operating income for the quarter rose 2.6% to $389 million.
Adjusted EBITDA was $463.3 million versus $465.1 million last year.
Adjusted EPS of $0.84 beat the analyst consensus of $0.72.
Mattel held $148.5 million in cash and equivalents as of September 30, 2021.
"We successfully navigated ongoing global supply chain disruption, achieved sales growth and, per The NPD Group, continued to gain market share," said CEO Ynon Kreiz.
Outlook: Mattel raised FY21 net sales growth outlook to 15% in constant currency (prior view 12% - 14%).
Adjusted Gross Margin guidance remains unchanged at 47.6% - 48.1%.
It sees Adjusted EBITDA of $900 million - $925 million (prior $875 million - $900 million).
Price action: MAT shares closed higher by 2.26% at $20.33 on Thursday.