Mattel Inc, the largest US toymaker, posted a higher-than-expected fourth-quarter profit on Monday 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 $286.4 million, or 75 cents a share, from $279.2 million, or 69 cents, a year earlier.
Analysts polled by Reuters were expecting the El Segundo, California-based company to earn 66 cents a share. Mattel said quarterly sales rose to $2.1 billion, compared with analysts' estimates of about $1.97 billion. It said full-year revenue rose 9 percent to $5.65 billion from about $5.2 billion, with international sales of its Hot Wheels, Matchbox and Tyco toys rising 5 percent.
"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 percent domestically and world-wide 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, Chairman and Chief Executive Robert Eckert said on a conference call.
Fourth-quarter sales of its Fisher-Price line, which includes its Little People toys and Power Wheels brand, rose 16 percent to $805 million, the company said. The company said its October acquisition of electronic game maker Radica Games Limited was included in its fourth-quarter and full-year results.
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