Mattel soars after earnings smashed estimates and after the Barbie maker calls its whistleblower allegations 'unfounded'
- Mattel, the toymaker soared more than 18% in premarket trading. The firm beat estimates in revenue and earnings per share, according to CNBC.
- Mattel also said that while it had misstated public financial statements in 2017, a whistleblower complaint earlier this year was unfounded.
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The maker of Barbie, Mattel, is set to soar after company earnings beat expectations and after calling a whistleblower complaint against the company earlier this year "unfounded."
The company said in a statement late Tuesday that revenues rose 3% to $1.48 billion, and earnings per share improved by ¢8 to ¢26, which, according to CNBC smashed expectations, of $1.43 billion and ¢16 cents respectively.
Mattel soared 18.2% in premarket trading at 10 a.m. in London (6 a.m. ET) on the news.
The company also released a separate statement, saying an independent audit into the company found it had misstated financial statements in the last two quarters of 2017, but that there was no impact on the financial outcome of that year.
The audit found that complaints from a whistleblower's letter earlier this year were "unfounded or immaterial."
Mattel cancelled a bond sale in August over the letter, according to CNBC, which also reported that the company did not disclose the contents of the letter at the time.
The toymaker also said that sales of Barbie jumped 10% in the third quarter and that Hot Wheels sales rallied 25%.