She's less than a foot tall but worth over a billion dollars at the box office alone. For Mattel (MAT), the "Barbie Boost" is off and running. After its July release, the Greta Gerwig-directed Barbie film quickly rocketed to the highest-grossing film of the year. It's earned over $1.4 billion worldwide (so far), putting it among the top 20 highest-grossing movies of all time alongside superhero epics like The Avengers and timeless classics like Titanic. Mattel's vintage 1959 toy is now Hollywood royalty. The result: Barbie sales jumped 16% in the third quarter, while overall revenue for the toymaker rose 9% to $1.92 billion. This performance exceeded Wall Street's expectations, with earnings per share at $1.08 (adjusted), compared to the expected 86 cents. Our consumer insights machine saw this jump in consumer demand coming from a mile away. Just check out the Barbie brand buzz chart below, which captured a 734% year-over-year surge: Last week's earnings weren't enough to impress analysts, though. CEO Ynon Kreiz noted a year-to-date decline in overall toy industry sales. This observation, coupled with Mattel's cautious stance towards the upcoming holiday season and broader industry challenges, led to a 16% decline in MAT shares between the market close on Wednesday and the opening bell on Thursday. Analysts highlighted this "near-term cautiousness" and broader industry weakness as key factors affecting investor sentiment. But we think Wall Street got it dead wrong. Here are three big reasons why we're bullish on Mattel ahead of the holiday season... Click here to continue reading Until next time, |
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