Tags: Hasbro | board games | holiday | sales

Hasbro Surges Most in 16 Years as Bet on Board Games Pays Off

Hasbro Surges Most in 16 Years as Bet on Board Games Pays Off

(Source: Hasbro Inc.)

Monday, 06 February 2017 01:25 PM

Hasbro Inc. decision to stick by Monopoly and other traditional games -- a daring move in an increasingly digital world -- is paying off after a robust holiday season boosted the shares the most in 16 years.

The toymaker bucked lackluster results at Toys “R” Us Inc. and Mattel Inc., thanks in large part to games like “Pie Face” and “Magic: The Gathering.” The unit increased sales 11 percent to $518.7 million in the fourth quarter, the company said on Monday. That, along with its first Christmas season with the primary Disney Princess and Frozen license, helped the company top analysts’ estimates for profit and sales.

“Hasbro’s gaming portfolio is unparalleled,” Chief Executive Officer Brian Goldner said on a call with analysts. “It addresses broader demographics and play experiences better than any other company.”

Hasbro shares advanced as much as 17 percent to $96.34 on Friday, the biggest intraday gain February 2001. The stock already had gained 10 percent in the 12 months through Friday.

Topping Estimates

Revenue rose 11 percent to $1.63 billion, beating analysts’ $1.5 billion average projection, Hasbro’s second straight strong performance. Profit was $1.64 a share, excluding some items, according to the Pawtucket, Rhode Island-based company. Analysts projected $1.28, on average.

When computer tablets went mainstream earlier this decade, sales of traditional games suffered as consumers spent more time on mobile devices. That trend has since waned as adults and kids have reverted back to in-person experiences. Last year, industrywide sales of games in the U.S. rose 21 percent to $307 million, according to NPD Group.

Hasbro gained share in major markets including the U.S., the U.K., China, Brazil and Russia, Goldner said. The toymaker saw strong demand across the world, especially in the U.S., he said. That countered Mattel, which said sales significantly slowed down in the first three weeks of December.

The company also increased its quarterly dividend 12 percent to 57 cents a share. That marked the eighth straight year it boosted the payout.

 

© Copyright 2021 Bloomberg News. All rights reserved.


   
1Like our page
2Share
StreetTalk
Hasbro Inc. decision to stick by Monopoly and other traditional games -- a daring move in an increasingly digital world -- is paying off after a robust holiday season boosted the shares the most in 16 years.
Hasbro, board games, holiday, sales
331
2017-25-06
Monday, 06 February 2017 01:25 PM
Newsmax Media, Inc.
 
Newsmax TV Live

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