Hasbro Global Sales Boost 3Q Profit
Hasbro’s (NASDAQ:HAS) third-quarter profit was up 17% on global sales growth and stronger demand for girls’ toys, sending shares higher Monday morning.
The stock rallied 6.8% to $50.45 in recent trading, as Hasbro beat Wall Street estimates.
The toy maker, whose brands include Monopoly, Nerf and G.I. Joe, reported net income of $193 million compared to $164.9 million in the year-ago period. Per-share earnings checked in at $1.46, up from $1.24.
The latest quarter included a tax adjustment that contributed 18 cents a share to earnings, offset by other charges that amounted to three cents a share.
Excluding those one-time items, adjusted per-share earnings climbed to $1.31 from $1.24.
Revenue ticked 1.9% higher to $1.37 billion.
Analysts were expecting a profit of $1.29 a share on revenue of $1.34 billion.
International sales, which jumped 11%, overshadowed a 5% decline in U.S. and Canada sales.
Sales of boys’ products, Hasbro’s largest top-line contributor, totaled $392 million, a 17% decline on a tough year-ago comparison. Girls’ products surged 19%, while the games category posted 5.9% sales growth.
The Pawtucket, R.I., company has begun to cut costs in an effort to save $100 million annually by 2015. Streamlining the business has become more important given the “challenging consumer environment in developed economies,” Hasbro CEO Brian Goldner said in a statement.
Goldner also said the company’s brand initiatives for the holiday shopping season are having an impact on sales. Meanwhile, an expanded presence in faster growing geographies helped boost emerging markets growth to 22% in the latest period.
Rival toy maker Mattel (NYSE:MAT) also beat the Street in the third quarter, reporting last week a 16% increase in its profit amid higher Barbie sales.