Mattel Inc. (MAT), the world’s largest toymaker, posted third-quarter earnings that topped analysts’ estimates as sales of Barbie and American Girl gained.

Net income in the three months ended Sept. 30 rose 16 percent to $422.8 million, or $1.21 a share, from $365.9 million, or $1.04, the El Segundo, California-based company said today in a statement. Analysts expected $1.12 a share, according to eight estimates compiled by Bloomberg. Third-quarter earnings included a tax benefit of 5 cents a share, Mattel said.

Chief Executive Officer Bryan Stockton has been trying to boost sales amid lackluster growth of the toy industry in the U.S., the company’s largest market, as kids spend more time using electronic devices. Many toymakers, including Mattel, have tried making products that incorporate devices such as Apple Inc.’s iPod with little success.

Eoin Treacy's view As the global middle class expands, consumption of what would have been luxury items from the perspective of parents increases. There is no denying that children are using more electronic devices not least tablets, however the market for convention games and toys remains buoyant in developing markets.

Mattel hit a medium-term peak in May and pulled back to test the region of the 200-day MA where it has firmed since late August. Some additional time spent in this area would help build support but a sustained move below $40 would now be required to question medium-term potential for additional upside.

Hasbro has been consolidating in the region of the 2010 peak since May and has returned to test the region of the 200-day MA where it has firmed. A sustained move below the trend mean would be required to question potential for additional upside over the medium term.

Activision Blizzard, as one of the world’s largest videogame publishers, is also worthy of mention. The share has been subject to a number of big news items this year, following the buyout of Vivendi’s shareholding. Prices have been consolidating above $16 since late July and a sustained move below that level would be required to question medium-term potential for additional upside.