Hasbro Inc. said Friday that people bought fewer toys than it had expected during the crucial holiday season and says revenue will probably decline for both the fourth quarter and the year. Its shares fell 5 percent in premarket trading.
The company also says it expects a modest increase in earnings per share for the year compared with last year's $2.48 per share. Analysts expected $2.70 per share.
"We no longer believe we will grow revenues for the year due to a slowdown in U.S. consumer demand, which we experienced late in the fourth quarter," Hasbro CEO Brian Goldner said. Weaker demand in the U.S. and Canada was partly offset by international strength, he added.
Analysts had forecast a 2 percent increase generally for toy makers generally during the holiday season, a make-or-break time of year because they can make up to 40 percent of annual sales.
The company, whose products include including Nerf dart blasters and Scrabble, said Friday that full-year revenue will be $4 billion, lower than the $4.07 billion reported last year.
Analysts were looking for revenue of $4.12 billion, according to FactSet.
Fourth-quarter revenue is expected to fall 7 percent to $1.3 billion.
Hasbro, based in Pawtucket, R.I., expects revenue and earnings per share growth in 2011.
Shares fell $2.14, or 5 percent, to $42.51 in premarket trading.
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