Mattel Stock Jumps on Earnings, Verdict

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Shares of Mattel Inc. jumped 13 percent Friday on better-than-expected second quarter earnings and the El Segundo toymaker’s victory in the Bratz doll case.

Mattel said quarterly net income dropped 48 percent to $11.8 million, or 3 cents per share, with revenue up 11 percent to $1.11 billion. The company blamed the net income drop on higher costs that offset strong sales of products tied to summer hit movies.

Analysts surveyed by Thomson Financial First Call had expected profit of 2 cents per share on revenue of $1.04 billion.

Mattel’s sales were strongest in its entertainment tie-ins, including products related to movies such as “Batman: The Dark Knight,” and “Kung Fu Panda.” Products tied to “Kit Kittridge: An American Girl” also did well, the company said. Barbie’s worldwide sales, however, were down 6 percent.

Shares were also boosted by the verdict handed down by a federal jury on Thursday in Mattel’s claim that it deserves money from the sales of a competing doll. The jury ruled that Carter Bryant, the designer of Van Nuy’s MGA Entertainment’s rival Bratz characters, conceived the idea for the dolls while working for Mattel. The jury next week will consider potential damages in a separate hearing that could mean millions of dollars for Mattel.

Mattel shares closed up $2.35 cents to $20.65.