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FIVE at FIVE AU: Mattel shares soar as Barbie mania makes impact; shareholders happy after Pilbara Minerals record production

Published 25/07/2023, 03:40 pm
© Reuters FIVE at FIVE AU: Mattel shares soar as Barbie mania makes impact; shareholders happy after Pilbara Minerals record production
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The ASX has been pushed higher by Materials (+3.11%) and Energy (+1.1%) stocks today.

The S&P/ASX200 gained 35.30 points or 0.48% to 7,341.70. Over the last five days, the index has gained 0.79% and is currently 2.99% off of its 52-week high.

The top-performing stocks in this index are Sayona Mining and Pilbara Minerals up 8.33% and 6.64% respectively.

Pilbara Minerals released its record quarterly production and sales result after market close on Monday which showed a 10% increase in production of spodumene concentrate to 162,800 tonnes in the June quarter – the highest quarter since commissioning.

It helped Pilbara meet the top end of its FY23 upgraded production guidance.

For FY23, Pilbara recorded 620,100 dry metric tonnes of concentrate production, 64% higher than FY22. Meanwhile, sales increased 22% to 176,300 tonnes but revenue fell 18% against the March quarter due to a 33% decline in average realised selling price offset by sales volume increases.

That price was 87% on FY22 and the full-year revenue result was a 238% increase to $4 billion.

Most sectors were in the red today, despite the upward momentum of the index itself. The biggest loser was Consumer Discretionary down 0.90%, followed by Utilities which lost 0.73%.

Interesting Barbie fact

Nasdaq-listed Mattel Inc (NASDAQ:MAT) has increased production of its Barbie toys after Barbie the movie took home an estimated $155 million in its opening weekend.

Shares of the toymaker soared after the movie was released. The company also released better-than-expected adjusted earnings of 3 cents a share, beating consensus estimates calling for a net loss of 5 cents a share.

Mattel shares jumped 7% to $21.97 in after-hours trading. The stock had already risen 81% in the past 12 months and 17% year-to-date through Tuesday’s close.

“Our overall performance this quarter and comprehensive topline growth is adding momentum to our transformation strategy,” CEO Ynon Kreiz said in the earnings release. “We are now firmly in growth mode and establishing Mattel as an IP-driven, high-performing toy company.”

Mattel would be keen to further capitalise on the momentum as the movie continues to make box office waves.

As Rosenblatt's director of research, Steve Frankel said, "Moviegoers embraced fresh ideas, rather than the steady stream of franchise films that have dominated the release calendar."

Five at five

On the small cap front, the S&P/ASX Small Ordinaries (XSO) lost 0.031%.

However, there was good news among some small caps.

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Talon Energy Ltd (ASX:TPD) has progressed its strategy to provide a new energy source to Mongolia and its neighbour China with the first gas from the Lucky Fox-1 pilot well at the Gurvantes XXXV CSG Project flowed to the surface and flared.

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