Hasbro tops expectations

Toys and games giant Hasbro Inc (NASDAQ:HAS) cheered the market with reports of buoyant trading in the first quarter.

The shares were up 5.7% at US$101.52 in pre-market trading as net earnings rose 41% to US$68.6mln from US$48.8mln in the same period of 2016.

Underlying earnings per share rose to 54 cents, including an 11 cent boost from a change in accounting procedure, from 38 cents the previous year. Analysts had expected earnings to be more or less unchanged year-on-year.

“Our first quarter results are in line with our previously communicated expectations and we are well positioned to execute against 2017’s rich content slate and diverse new initiatives,” said Brian Goldner, Hasbro’s chairman and chief executive officer.

“Revenue grew in the quarter and we drove strong consumer takeaway at retail, both compared to a robust first quarter last year and with a shift of Easter into this year’s second quarter. Over the coming quarters, we are supporting significant new initiatives including major theatrical films for both Franchise and Partner Brands,” Goldner revealed.

Net revenues in the US and Canada were up 2% to US$451.6mln from US$443.6mln the year before, but international revenues were flat at US$345.3mln.

Toys based on the Nerf and Transformers franchises did well in the quarter, Hasbro revealed.

Entertainment and licensing revenues jumped 24% to US$52.7mln from US$42.5mln, reflecting the increasing importance of digital gaming in Hasbro’s product suite.

Story by ProactiveInvestors