Hasbro earnings top estimates after ‘Star Wars’ helps fuel sales

(Updated 11:49 a.m.)
PAWTUCKET – Hasbro Inc. posted fourth-quarter profit that topped analysts’ estimates after demand for “Star Wars” and “Jurassic World” merchandise boosted sales.

Earnings rose to $1.39 a share, the company said in a statement Monday. Analysts had projected $1.29 on average, according to data compiled by Bloomberg. Profit was $174.4 million in the fourth quarter that ended Dec. 27, compared with $168.8 million in fourth quarter 2014.

The toymaker’s results rebounded after sales in the previous quarter missed estimates, hurt by weakening girls brands like My Little Pony and the impact of a strong dollar on overseas revenue. While currency still weighed on results, the debut of the seventh “Star Wars” film in December helped overcome that drag. Marvel and “Jurassic World” toys also lifted sales of Hasbro’s Boys category, which saw a 35 percent sales gain last quarter.

Total revenue rose 13 percent to $1.47 billion in the fourth quarter, which ended Dec. 27. Analysts had projected $1.37 billion. If it weren’t for $128.1 million lost to currency effects, the growth would have been 23 percent. The company also raised its quarterly dividend 11 percent to 51 cents from 46 cents.

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The results followed a Bloomberg News report last week that Hasbro and Mattel recently held talks about a possible merger. Hasbro approached Mattel about a potential transaction late last year, and the companies have held on-again-off-again talks about a deal, said people who asked not to be identified as the situation isn’t public.

Hasbro Inc. CEO Brian Goldner, responding to a question about the company’s merger plans, said he would consider “adding on acquisitions,” even as the toymaker concentrates on its own strategy.

“We continue to remain open to ideas that enhance our strategic brand blueprint, but we’re very focused on executing our own strategy,” Goldner said on a conference call Monday after he was asked if Hasbro would consider a “transformative” deal. “We have looked from time to time to round that out, to build our capabilities.”

The company also posted full year profit of $446.9 million, or $3.57 per diluted share, compared with $413.3 million, or $3.20 per diluted share. Revenue for 2016 was $4.4 billion compared with revenue of $4.3 billion a year ago.
Web editor Lori Stabile contributed to this report.

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