THE NEWS: Toy maker Mattel said Tuesday that cost cuts and higher revenue from toys including Monster High dolls and Fisher-Price helped send net income up 22 percent in the third quarter. Revenue rose 4 percent to $2.08 billion.

THE CONTEXT: The holidays are expected to be a tough battleground for toy makers, with retailers ordering inventory cautiously. But results indicate that Mattel is outperforming its rivals so far as it heads into the crucial holiday season, when toy makers can earn up to 40 percent of annual revenue.

WHAT'S NEXT: Smaller rival Hasbro Inc. reports its results on Monday.