Mattel shares exploded in after-hours trading on Thursday after the company reported its first quarter 2018 financial report.
The stock rose almost 4% after the bell closed and saw more gains in Friday trading after reporting net sales, on an adjusted basis, of $737.9 million for the quarter. This was better than the $694.38 million that analysts had been expecting.
“While the Toys ‘R’ Us liquidation created some challenges, setting this aside, Mattel is off to a good start with early momentum,” said Chief Executive Officer Margaret Georgiadis who recently announced she would be stepping down.
It has now been six straight quarters that Mattel has missed the Zacks Consensus, posting a wider than expected loss in the first quarter.
An adjusted loss of 60 cents was worse than the loss of 39 cents expected by Wall Street.
Mattel also said it expects revenue to drop in the second-quarter, primarily due to the liquidation of Toys R Us. “This is not going to be easy… But I feel confident about where we sit and what we have to do to take it on,” said Ynon Kreiz, the company’s incoming CEO.
Disclaimer: We have no position in Mattel, Inc. (NASDAQ: MAT) and have not been compensated for this article.