Mattel stock rallies as results, outlook top analysts' expectations

Mattel (MAT.US) stock rose over 12% during today's session after the toy maker reported better than expected quarterly results. Mattel earned 53 cents per share and crushed analysts’ estimates of 30 cents per share. Revenue climbed 8% to $1.75 billion, beating estimates for $1.66 billion. Company also issued an upbeat 2022 outlook as it believes that robust demand for its Barbie dolls and other toys will help it weather supply chain disruptions. For the current year the company expected revenue climbing between 8% and 10% compared to 2021. Mattel has no plans to restart issuing a dividend. Instead, it's using its current capital allocation to invest in growth areas.

Mattel (MAT.US) stock rose sharply during today's session to $25.20, which is marked by the upper limit of the 1:1 structure and is the highest level since February 2017. The nearest support lies at $23.10 and coincides with the earlier broken upper limit of the triangle formation. Source: xStation5