Hasbro beats analyst estimates in 3Q

Hasbro Inc.
SUBSCRIBERS TO the Hasbro Gaming Crate will receive three new games in each crate. The toymaker is planning to launch the quarterly subscription service this summer.

PAWTUCKET – Boosted by Star Wars sales, Hasbro Inc. beat analyst estimates in the third quarter, showing a profit of $207.6 million, or $1.64 per diluted share, compared with $180.5 million, or $1.40 per diluted share, in the year-ago period.
The toymaker released its third-quarter earnings Monday. Analysts has expected earnings of $1.52 for the quarter.
Revenue was flat at $1.47 billion compared with the prior year period. However, revenue climbed 9 percent when a negative $132.4 million impact from foreign exchange is excluded.
“Strong global consumer demand across Hasbro franchise brands and partner brands drove continued momentum in our business,” Brian Goldner, Hasbro’s chairman, president and CEO, said in a statement. “Brand innovation and superior market execution delivered not only underlying revenue growth, but higher profitability in a very challenging foreign exchange environment.”
The boys category saw revenue jump 24 percent year over year, to $593.1 million, thanks to the retail launch of Star Wars: The Force Awakens products, and growth in the Nerf franchise brand and Jurassic World line. Hasbro said gains in those segments offset declines in Transformers, which faced “difficult comparisons” due to a movie release last year.
The preschool category climbed 17 percent year over year in the third quarter to $219.6 million. Play-Doh, Playskool Heroes Star Wars Galactic Heroes and Jurassic World helped boost revenue, as well as Playskool Friends My Little Pony, Hasbro said.
Games declined 8 percent in the third quarter, to $363.5 million, due to the franchise brand Magic: The Gathering, and the girls category fell 28 percent, to $294.8 million, with Furby leading the decline. Smaller declines in the girls category were reported in My Little Pony and Furreal Friends. Shipments of Disney Descendants and growth in Play-Doh Dohvinci helped offset those declines, Hasbro said.

Excluding the sale of manufacturing operations in East Longmeadow, Mass., and Waterford, Ireland, adjusted profit was $200.5 million, or $1.58 per diluted share. That included a pre-tax gain of $9.9 million. Adjusted third-quarter 2014 earnings amounted to $187.8 million, or $1.46 per share, which included a pre-tax charge of $11.6 million related to the restructuring of the company’s investment in its television joint venture.
“Throughout 2015, our teams have positioned Hasbro to succeed in a very challenging environment,” Deborah Thomas, Hasbro’s chief financial officer, said in a statement.

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