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NEW YORK - Mattel, the largest US toymaker, posted a higher-than-expected fourth-quarter profit yesterday as sales of its T.M.X. Elmo and Barbie line jumped during the holiday quarter, sending its shares to a new 52-week high.
Mattel, known also for its American Girl dolls and accessories, said net income rose to US$286.4 million ($410 million), or US75c a share, from US$279.2 million, or US69c, a year earlier.
Analysts polled by Reuters were expecting the El Segundo, California, company to earn US66c a share.
Mattel said quarterly sales rose to US$2.1 billion, compared with analysts' estimates of about US$1.97 billion.
It said full-year revenue rose 9 per cent to US$5.65 billion from about US$5.2 billion, with international sales of its Hot Wheels, Matchbox and Tyco toys rising 5 per cent.
"They showed strength across the board. Every division looks strong," said Gerrick Johnson, an analyst with BMO Capital Markets.
"There's particular strength with the car property, Dora the Explorer and Elmo," said Johnson, who has an "outperform" rating on Mattel's stock.
Gross sales of its Barbie line rose 3 per cent domestically and worldwide during the quarter, the company said. Barbie has faced a stiff challenge from privately held MGA Entertainment's Bratz dolls, but sales should continue to grow steadily with Bratz appearing to have peaked, Johnson said.
The company was also buoyed by strong holiday sales of the T.M.X. Elmo, the 10-year anniversary edition of the Tickle Me Elmo, representing the strongest period for the plush red doll since its debut, said chairman and chief executive Robert Eckert.
Fourth-quarter sales of its Fisher-Price line rose 16 per cent to US$805 million.
- REUTERS
