Mattel Inc. still has game.
Shares of the toy maker — which is undergoing a restructuring plan — surged 20% 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. Sales of Barbie increased 10%, but declined 14% for American Girl.
Analysts surveyed by FactSet had expected adjusted earnings of 16 cents a share on revenue of $1.43 billion.
The company also announced the audit committee of its board of directors completed an independent investigation into allegations of accounting errors from a whistleblower letter in August. The committee concluded the “objectivity and impartiality of Mattel’s outside auditor has not been impaired, and that Mattel’s outside auditor can continue as its independent auditor,” the company said in a statement. “Mattel’s outside auditor agrees with that conclusion.”
Additionally, Mattel said Chief Financial Officer Joseph J. Euteneuer will leave after a transition period of up to six months. The El Segundo, Calif.-based company is conducting a search for its next CFO.
The accounting errors came during the CEO tenure of Margaret Georgiadis, who was succeeded by Ynon Kreiz in April 2018.
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 6% 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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