Hasbro's Stock Rallies After Q1 Profit, Sales Beat Expectations

Hasbro Inc. shares surged 6.3% in premarket trade Monday, after the toymaker reporterd first-quarter profit and sales that were well above expectations, as strength in the boys, games and preschool categories offset weakness in the girls category. The company reported net earnings of $26.7 million, or 21 cents a share, down from $32.1 million, or 24 cents a share, in the same period a year ago, but above the FactSet consensus of 8 cents a share. Revenue rose 5% to $713.5 million, beating the FactSet consensus of $661.9 million. "Foreign exchange did negatively impact both revenues and earnings in the quarter; however, several factors helped mitigate the negative impact to profitability," said Chief Financial Officer Deborah Thomas. "These included the continued momentum in our Franchise Brands, the benefit of favorable foreign exchange product cost hedges and a larger contribution of higher-margin Entertainment and Licensing revenues." The stock has run up 20% year to date, while the S&P 500 has gained 1.1%.