Mattel Inc. shares jumped to a four-year high after the toymaker beat Wall Street’s estimates for the first quarter and raised its outlook for all of 2021.

Revenue rose 47 per cent to US$874 million on soaring doll sales, Mattel said Thursday, beating analysts’ predictions of US$684.8 million and marking the fastest growth in at least 25 years. The company reported a loss of 10 cents a share, excluding some items, but that was far less than the 33-cent loss analysts had predicted.

The El Segundo, California-based company is bouncing back from disastrous results a year ago, when the pandemic wiped out stores and led to factory closings and production delays. Barbie and American Girl doll sales led the rebound, particularly in North America, with worldwide billings soaring 69 per cent.

Mattel now expects sales to rise 6 per cent to 8 per cent in 2021, an increase from its previous projection of a mid-single-digit gain in revenue. Earnings before interest, taxes, depreciation and amortization will be US$800 million to US$825 million, about US$25 million more than estimated in February.

 “Following the third consecutive quarter of growing market share, we are strengthening our position as a consistent leader in the toy industry,” Chief Executive Officer Ynon Kreiz said in a statement. “We believe we are very well-positioned to improve profitability and accelerate top-line growth in 2021 and beyond.”

Mattel rose as much as 12 per cent to US$23.31 in New York trading Friday, the highest price for the shares since April 2017. The stock had already advanced 20 per cent this year through Thursday, mostly as Barbie sales continue to outperform.

The company has worked to improve profitability through cost cuts and other measures, and its adjusted gross margin increased to 47 per cent from 43.5 per cent a year earlier. Further, its credit rating has improved after the company was downgraded to junk in 2017, when sales and margins were tumbling. It completed a US$1.2 billion refinancing over the quarter, reducing annual interest expense by US$40 million.