Benzinga | Oct 22, 2021 07:10AM EDT

Mattel Q3 Earnings Beat Estimates, Lifts FY21 Sales Growth Outlook

* Mattel Inc (NASDAQ: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.