Tags: Hasbro | Stronger-Than-Expected | Profit

Hasbro Posts Stronger-Than-Expected Profit

Monday, 18 Oct 2010 08:59 AM

Hasbro Inc. reported a higher-than-expected quarterly profit on Monday on cost controls and strong demand for its preschool and boys' toys.

The No. 2 U.S. toymaker, home to brands from Playskool to Monopoly, said it still expected an increase in full-year revenue and earnings per share, including spending for its new television network.

The results came just days after larger rival Mattel Inc missed quarterly sales estimates on an unexpected decline at its Fisher-Price infant and preschool toy business.

"They put up good numbers," BMO Capital markets analyst Gerrick Johnson said. "Revenues up 3 percent. That's better than Mattel, which was up 2 percent.

"Very good execution on Hasbro's side. Nerf is doing very, very well. That's driving significant increases in boys and the preschool line looks reinvigorated," added Johnson, who has a "market perform" rating on the shares.

Hasbro said its third-quarter net income rose to $155.2 million, or $1.09 a share, from $150.4 million, or 99 cents a share, a year earlier. The profit was 5 cents a share higher than the forecast from analysts polled by Thomson Reuters I/B/E/S.

Sales rose 3 percent to $1.31 billion, topping the $1.29 billion analysts had expected. Revenue increased 4 percent excluding currency changes.

Revenue grew in three of four major product categories, led by preschool, which was up 9 percent, and boys, the largest category, up 4 percent. Sales of games and puzzles rose 2 percent, while girls slipped 1 percent.

The boys category's gain was better than the 1.1 percent decline Stifel Nicolaus had expected.

The entertainment and licensing segment's revenue fell 34 percent due to declines in "Transformers" and "G.I. Joe" movie-related sales.

The company said the fourth quarter would reflect the largest percentage of its expected 25-to-30-cent-per-share full-year spending to support the launch this month of The Hub, a new children's TV network formed with Discovery Communications Inc.

The channel, launched on Oct. 10, will replace Discovery Kids in 60 million cable and satellite homes in an attempt to fill a void between networks featuring preschool-age programming and shows for older children in the 11-to-14 age range.

Some analysts do not expect robust sales growth in 2010 as Hasbro faces tough comparisons and dilution from the TV joint venture. Many seem more focused on what appears to be a strong line-up for 2011.

Hasbro holds licenses to make merchandise tied to upcoming movies such as "Transformers 3", "Thor" and "The First Avenger: Captain America", all scheduled for release in 2011.

Last December, Hasbro signed a 10-year deal to make and sell toys and games based on characters in the American children's television series "Sesame Street."

Hasbro bought back $260.1 million worth of its common stock during the third quarter, and has $157.5 million remaining in the current authorized program.

© 2017 Thomson/Reuters. All rights reserved.

   
1Like our page
2Share
Companies
Hasbro Inc. reported a higher-than-expected quarterly profit on Monday on cost controls and strong demand for its preschool and boys' toys. The No. 2 U.S. toymaker, home to brands from Playskool to Monopoly, said it still expected an increase in full-year revenue and...
Hasbro,Stronger-Than-Expected,Profit
462
2010-59-18
Monday, 18 Oct 2010 08:59 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved