Mattel shares surge 15% on big revenue, earnings beat

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Mattel Inc. still has game.

Shares of the toy maker — which is undergoing a restructuring plan — surged nearly 15% in after-hours trading Tuesday after it reported third-quarter results that breezed past Wall Street analysts’ estimates.

Mattel MAT, +2.52%   said it earned $70.6 million, or 20 cents a share, in the quarter, compared with $6.3 million, or 2 cents a share, in the year-ago period.

Adjusted for one-time items, the toy maker said it earned 26 cents a share, compared with 18 cents a share a year ago.

Revenue rose to $1.48 billion from $1.438 billion a year ago. Hot Wheels toys drove a 13% jump in worldwide gross sales for vehicles to $346.9 million.

Analysts surveyed by FactSet had expected adjusted earnings of 16 cents a share on revenue of $1.43 billion.

In the run-up to its results, Mattel’s stock had dipped 9% since mid-October.

Hasbro Inc.  HAS, +2.07%  reported third-quarter results last week, blaming the trade war with China for its earnings misfire in its fiscal third quarter.

Read more: Hasbro says tariffs are to blame for earnings miss

Mattel’s turnaround game plan has succeeded of late despite continued declines in brands like American Girl and Fisher-Price.

In July, Mattel reported a narrower quarterly loss and sales that topped Wall Street views, sending its shares up 6%. Mattel benefited from an expanded licensing deal with Walt Disney Co. DIS, -0.80%  for Pixar film characters, and strong performances from product lines such as Barbie and Hot Wheels.

Mattel shares are up nearly 5% this year. The S&P 500 index SPX, -0.08%   has gained 21% this year.

Read more: Mattel stock rises after toy maker’s quarterly loss narrows

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