Hasbro 1Q earnings beat expectations

Earnings HQ: FBN's Jo Ling Kent breaks down Hasbro's first-quarter earnings report.

Hasbro Beats the Street in 1Q

Features Dow Jones Newswires

Hasbro Inc. posted better-than-expected revenue and profit in its first quarter, as the toy maker logged growth despite foreign exchange impacts.

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Hasbro's Transformers toys and preschool division helped drive growth in the first three months of the year.

Shares gained 6.2% in premarket trading.

Hasbro's upbeat results come at a tough time for the toy industry, as children turn away from traditional toys to electronic games and consumer electronics.

Last week, rival Mattel Inc. reported its sixth straight quarter of sales declines while its new chief executive pledged a "rapid redo" of the company culture to develop more creative toys and sell them better.

For the period ended March 29, Hasbro posted a profit of $26.7 million, or 21 cents a share, compared with $32.1 million, or 24 cents a share, a year earlier. The quarter included a $8.5 million income tax expense, compared with a $5.5 million benefit a year ago.

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Revenue grew 5% to $713.5 million. Excluding a $62.6 million foreign exchange impact, revenue would have grown 14%.

Analysts polled by Thomson Reuters had projected earnings of eight cents on revenue of $660.3 million.

Sales in Hasbro's boys division, which includes Transformers and Nerf toys, grew 10% to $272.6 million in the quarter. Preschool sales surged 22% to $88.1 million, fueled by strength in its Play-Doh brand and Transformers Rescue Bots toys.

Demand for Hasbro's toys traditionally considered for girls, such as My Little Pony, had shown growth in recent quarters. In the latest quarter, however, sales fell 16% to $117.1 million amid weakness in Furby and Easy Bake products.

Games sales increased 7% to $235.6 million.