Toy maker Mattel, Inc. (MAT) on Tuesday posted better-than-expected third quarter earnings results, aided by a solid uptick in gross margins, despite rising costs.
The El Segundo, CA-based company reported third quarter net income of $365.9 million, or $1.04 per share, compared with $300.8 million, or 86 cents per share, in the year-ago period.
Revenue rose 4% from last year to $2.08 billion.
On average, Wall Street analysts expected a smaller profit of 99 cents per share, on lower revenue of $2.07 billion.
MAT noted that its gross margin rose to 53.7% in the latest quarter, up from 47.8% last year. This rise occurred despite an uptick in advertising and promotion expenses, as well as a sharp rise in administrative expenses.
Mattel shares rose $1.63, or +4.6%, in premarket trading Tuesday.
The Bottom Line
We have been recommending shares of Mattel (MAT) since Jan.31, when the stock was trading at $35.42. The company has a 3.50% dividend yield, based on last night’s closing stock price of $35.42.
Mattel, Inc. (MAT) is a “Recommended” dividend stock, holding a Dividend.com DARS™ Rating of 3.5 out of 5 stars.
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