Hasbro shares jump after ‘Star Wars’ helps profit beat estimates

HASBRO INC.'S profit increased to 38 cents a share in the first quarter, which ended March 27. Analysts had projected 24 cents. Profit was $47 million compared with $25.8 million during the year-ago period.
HASBRO INC.'S profit increased to 38 cents a share in the first quarter, which ended March 27. Analysts had projected 24 cents. Profit was $47 million compared with $25.8 million during the year-ago period.

PAWTUCKET – Hasbro Inc. rose as much as 5.4 percent in early trading after quarterly earnings topped analysts’ estimates, boosted by demand for “Star Wars”-licensed toys and its own Nerf and Play-Doh properties.
Profit increased to 38 cents a share in the first quarter, which ended March 27, the company said on Monday. Analysts had projected 24 cents. Profit was $47 million compared with $25.8 million during the year-ago period.

Revenue rose 16 percent to $831.2 million, beating the $779.3 million projection. Revenue in first quarter 2015 was $713.5 million.
In addition, excluding a negative $28.6 million impact from foreign exchange, first quarter revenue climbed 20 percent, the toymaker said.
“The first quarter was a very good quarter for Hasbro,” Deborah Thomas, Hasbro’s chief financial officer, said in a statement. “The strength of our results reflected the continued momentum in our business and strong execution from our global teams. We grew revenues, operating profit and earnings despite the continued negative impact from foreign exchange and challenging economic environments in some international markets. We returned $93.2 million in cash to shareholders and ended the quarter with a very strong balance sheet positioned to support our 2016 growth outlook. While most of the year remains ahead of us, it was a good start to the year.”
Hasbro’s sales surged in both its boys and girls categories, helping make up for a 2 percent slump in its board-game division, to $231.1 million. The company also has hitched its fortunes to Walt Disney Co.’s entertainment franchises. Toys based on “Star Wars,” and Disney princesses fueled growth last quarter, Hasbro said.
Boys, girls and preschool segments increased 24 percent, 41 percent and 11 percent, respectively, for revenue of $336.9 million, $165.4 million and $97.8 million.
“Demand for ‘Star Wars: The Force Awakens’ products continued to be high, and we benefited from the addition of Disney Princess and ‘Frozen’ fashion and small dolls,” CEO Brian Goldner said in a statement. “We are very encouraged with global demand and our outlook for 2016.”

Revenue in the U.S. and Canada grew 89 percent, to $443.6 million, while international rose 50 percent, to $345 million. Entertainment and licensing revenue declined 67 percent over the year to $42.5 million because last year’s first quarter benefited from a multi-year digital streaming deal for Hasbro Studios television programming which was not repeated in 2016.
The shares rose as high as $86.89 in early trading after the results were posted. Hasbro was already up 22 percent this year through the end of last week.
Bloomberg News contributed to this report.

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