Hasbro 3Q results climb, helped by tax adjustment
Oct. 21, 2013
PAWTUCKET, Rhode Island (AP) — Hasbro's third-quarter net income rose 17 percent, buoyed by a favorable tax adjustment and higher sales. Its adjusted results and revenue topped analysts' estimates.
Sales were strongest in the girls' category led by My Little Pony products and showed an increase in games, while sales in the boys' category fell and preschool sales slipped.
Its stock rose in premarket trading on Monday.
The quarterly results come as toy makers gear up for the holiday season, which can account for up to half their annual revenue.
The No. 2 toy maker earned $193 million, or $1.46 per share, for the three months ended Sept. 29. That compares with $164.9 million, or $1.24 per share, a year earlier.
Excluding 18 cents per share for the tax adjustment and restructuring and pension charges of 3 cents per share, earnings were $1.31 per share. Analysts polled by FactSet expected adjusted earnings of $1.30 per share, on average.
Revenue for the Pawtucket, Rhode Island, company rose 2 percent to $1.37 billion on strong sales overseas and in its girls category and entertainment and licensing segment. Wall Street was calling for revenue of $1.35 billion.
By category, Hasbro reported its strongest sales in the girls category — which was up 29 percent on the successful debut of My Little Pony Equestria Girls as well as the debut of Nerf Rebelle and increased sales of Furby and other My Little Pony products.
Sales of games rose 6 percent, its fourth straight quarterly increase. This was helped by higher sales of Jenga, the Elefun & Friends collection, Magic: The Gathering and the launch of the new Telepods game platform that includes the Angry Birds Star Wars II game.
In the boys category, sales dropped 17 percent as the Marvel and Beyblade brands faced tough year-ago comparisons. There were increased sales of Transformers and Star Wars products.
Preschool sales dipped 2 percent, but there were higher sales of the Play-Doh, Sesame Street and Transformers Rescue Bots products.
International sales increased 11 percent, helped by favorable foreign exchange rates and better sales in Europe, Latin America and the Asia Pacific region. Hasbro said that sales in the games, girls and preschool categories climbed overseas.
President and CEO Brian Goldner said in a statement that Hasbro Inc.'s business continues to improve in emerging markets, with growth of 22 percent in the quarter.
Sales for the entertainment and licensing unit rose 13 percent as it benefited from the addition of Backflip Studios. Sales for the U.S. and Canada fell 5 percent, stung by lower sales in the boys and preschool categories. Sales for the girls category climbed in the region, while the games category reported flat sales.
Last week Mattel Inc. reported its quarterly profit and revenue improved on increased sales of Barbie and Monster High dolls.