PAWTUCKET – Hasbro Inc. on Tuesday reported second-quarter profit of $142 million, after a loss in the same period a year earlier.
The toymaker said it had net income of $1.02 per share, more than a 100% increase from the $22.9 million loss on 17 cents per diluted share, reported one year prior.
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Tuesday’s results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 88 cents per share.
Hasbro posted revenue of $1.34 billion, a 1% increase year over year, missing Wall Street forecasts. Six analysts surveyed by Zacks expected $1.38 billion.
“The Hasbro team delivered strong second-quarter results, driving midsingle digit revenue growth absent foreign exchange and 200 basis points of adjusted operating margin expansion,” said Chris Cocks, Hasbro CEO.
Cocks noted Wizards of the Coast turned in its biggest quarter ever, led by 15% growth in tabletop gaming and 11% growth in Magic: The Gathering across platforms.
“We also significantly enhanced our digital play and direct-to-fan capabilities with the acquisition of D&D Beyond, which will serve as an important growth driver for Hasbro’s industry-leading fantasy gaming portfolio,” Cocks said. “We are making significant progress in our strategic plan review and are identifying and realizing cost savings across the business. Our teams are driving focus and scale in gaming, multigenerational brands and direct to consumer. … We have confidence in the strength of our initiatives for the second half and we are positioned to deliver profitable growth and long-term shareholder returns.”
Segment revenue for the second quarter (proforma):
- Franchise brands revenue increased 10% year over year to $743.9 million.
- Partner brands revenue increased 3% year over year to $219.4 million.
- Hasbro gaming revenue decreased 14% year over year to $125.8 million.
- Emerging brands revenue increased 3% year over year to $92 million.
- TV/film/entertainment revenue declined 19% from the previous year to $158.1 million.
(Material from The Associated Press was used in this report.)
