PAWTUCKET – Hasbro Inc. on Wednesday reported a profit of $58.2 million in the first quarter of 2024 compared with a loss of $22.1 million a year ago.
On a per-share basis, the company said it earned a profit of 42 cents per diluted share compared with the 16-cent loss per diluted share last year. Earnings, adjusted for non-recurring costs and amortization costs, came to 61 cents per share for the quarter.
The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of 27 cents per share.
As a result, Hasbro's share price jumped in early trading on the Nasdaq Wednesday, climbing 12% to $65.15 by 10:30 a.m.
"The first quarter was a good start to the year for Hasbro; we are continuing to see the results of our transformation work," Hasbro CEO Chris Cocks said in a statement. "Performance from our licensing portfolio shows the strength of our brands and we continue to fuel innovation in games and toys as we expand our reach across play patterns to fans of all ages."
Company revenue totaled $757.3 million, a decrease of 24% year over year. The company said the decline was driven primarily by the eOne film and television divestiture; excluding the divestiture, revenue declined 9% with growth in the Wizards of the Coast and digital gaming segment (up 7%) and entertainment (up 65%) was more than offset by declines in consumer products (down 21%).
The company’s franchise brands portfolio, including Magic the Gathering, Play-Doh and Nerf, logged revenue of $606 million in the quarter, a decline of 1% year over year.
Partner brands portfolio revenue, including products for Star Wars, Marvel’s Spider-Man and Marvel Studios content, totaled $8.7 million, a decline of 34% year over year. The portfolio was led by the Spider-Man franchise, including products in support of “Spider-Man: No Way Home” and the new animated show “Spidey and His Amazing Friends,” plus Avengers franchise support with the upcoming “Doctor Strange in the Multiverse of Madness.”
The portfolio brands segment, which now includes the company’s remaining nonbranded film and TV brands, was $63.1 million, a decline of 31% percent year over year.
Hasbro's gaming revenue totaled $408 million, an increase of 6% year over year.
With Associated Press reports.
