(Updated, 12:30 p.m.)
PAWTUCKET – Hasbro Inc., the world’s second-largest toymaker, surged the most in eight months after its third-quarter profit gain surpassed analysts’ estimates, helped by sales of preschool products and games.
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Net income rose 3.2 percent to $155.2 million, or $1.09 a share, in the quarter ended Sept. 26, the company said Monday in a statement. Analysts on average projected $1.04, according to a Bloomberg survey.
Hasbro sales climbed this year without the aid of movie tie-ins after films based on its “Transformers” and “G.I. Joe” brands boosted revenue a year ago. The company has made up for that with gains in games, such as Monopoly, and preschool toys such as the Mr. Potato Head brand, featured in “Toy Story 3,” the highest grossing film in the U.S. this year.
“While Transformers and G.I. Joe shipments present a difficult challenge in 2010, we are overcoming this comparison,” CEO Brian Goldner said on a conference call. “Our growth was broad-based both geographically and across numerous world class brands.”
Hasbro advanced $2.44, or 5.4 percent, to $47.52 at 9:53 a.m. in New York Stock Exchange composite trading. The shares earlier surged 8.2 percent, the most since Feb. 8.
Sales climbed 2.7 percent to $1.31 billion, also surpassing projections. Last year, Hasbro’s third-quarter profit was $150.4 million, or 99 cents a share.
Hasbro expects a “robust” holiday shopping season, with inventories rising from last year so the toymaker can meet demand, Goldner said.
The Hub, Hasbro’s joint venture children’s television network with Discovery Communications Inc., began broadcasting on Oct. 10 and has been well received by consumers, said Goldner, 47. The network airs programming with shows based on Hasbro toy lines such as “G.I. Joe” and “My Little Pony.”
Mattel Inc., the world’s largest toymaker, last week reported that third-quarter profit rose 23 percent to $283.3 million, or 77 cents a share. Profit excluding a tax benefit was 72 cents a share.
