Hasbro 2nd-quarter profit beats expectations
NEW YORK — Transformers aren’t just titans at the box office, they’re flying off toy shelves, too. Toy maker Hasbro Inc. said Monday strong sales of the morphing robots helped its second-quarter profit rise past analyst expectations.
Summer movie tie-in toys have been one bright spot for toy makers during the consumer-spending slowdown. Hasbro has been buoyed in recent years by toys tied to movies, including this summer’s hit “Transformers: Revenge of the Fallen” and the upcoming “G.I. Joe: “The Rise of the Cobra.”
“We couldn’t be more pleased with the performance both at the box office and at retail,” said CEO Brian Goldner. “Retailers around the world recognize that certain brands like Transformers bring to life the entire store for consumers, which translates into premium placement and representation across multiple departments for those brands.”
Still, weak international sales due to the stronger dollar and costs related to a joint venture crimped results.
Profit for the three months ended June 28 rose to $39.3 million, or 26 cents per share, from $37.5 million, or 25 cents per share, last year. Excluding costs related to its joint venture with Discovery Communications to form a TV network, income was 32 cents per share. That beat analysts expectations of 23 cents per share, according to Thomson Reuters.
Revenue edged up 1 percent to $792.2 million from $784.3 million last year, missing analyst expectations of $797.1 million. Excluding the adverse affect of the stronger dollar, net revenue rose 7 percent.
In the U.S. and Canada, sales rose 5 percent to $490.9 million from $467.7 million, boosted by sales of Transformers and G.I. Joe toys. Other strong sellers in the region were Littlest Pet Shop, Nerf, Play-Doh and Furreal Friends.
Internationally, sales fell 6 percent to $276.2 million from $293.7 million, hurt by the stronger dollar. Transformers and G.I. Joe toys were also among the better sellers internationally.
One weak spot was games and puzzles. Hasbro owns a multitude of game titles including Scrabble and Monopoly — and sales in that division fell 17 percent. But Hasbro said that was due to the timing of shipments for promotional programs rolling out over the next few months.
Hasbro also said the joint TV network will cost less than previously expected due to lower financing and amortization costs. The Pawtucket, R.I.-based company now expects the venture will hurt 2009 earnings by 15 cents to 20 cents per share, compared with a previous estimate of 25 cents to 30 cents per share.
Hasbro expects the project to hurt 2010 earnings by 25 cents to 30 cents per share, compared with the 30 cents to 35 cents per share previously forecast.
The network is scheduled to debut in fall 2010 and will air children’s programing, including a New Zealand show called “The WotWots” and other programs built around Hasbro brands such as Romper Room and Trivial Pursuit.
Stifel Nicolaus analyst Drew Crum said the results were “generally positive,” as the lower-than-expected revenue was offset by Hasbro’s guidance on the TV network venture. He rates the company “Hold.”
Next year’s Hasbro movie tie-ins will include “Iron Man 2″ and “Toy Story 3.” It is also developing movies with Universal based on its best-selling board games such as Candyland and Monopoly and its “Stretch Armstrong” line.
The second quarter is small for toymakers, who make up to 50 percent of annual sales during the holiday season. On Friday, rival Mattel Inc. — light on summer-movie tie-in toys this year — said its sales sank 19 percent in quarter, but cost cuts and lower inventory helped it post an 82 percent jump in profit, beating analyst expectations.
Shares rose $1.07, or 4.2 percent, to close at $26.45 Monday. The stock has traded between $21.14 and $41.68 during the past 52 weeks.
Related News
Earnings roundup: Global Payments 1Q profit rises, Immucor earnings grow 7 percent in 1QOctober 1st, 2009 Earnings roundup: Global Payments, ImmucorAmong the earnings stories for Thursday, Oct. 1, from AP Financial News:
ATLANTA (AP) — Global Payments Inc.
Olive Garden-owner Darden says 1st-quarter profit rises 15 pct even as sales fallSeptember 30th, 2009 Darden 1Q profit rises 15 pct even as sales fallORLANDO, Fla. — Darden Restaurants Inc., owner of the Olive Garden and Red Lobster chains, said Tuesday that its first-quarter profit rose 15 percent even as sales fell because food costs were lower than expected.
Toys R Us profit doubles in second quarterSeptember 4th, 2009 Toys R Us profit grows in 2QWAYNE, N.J. — Toys R Us Inc.
Sport Supply Group profit rises on cost cutting; sales fall 2.2 percentAugust 28th, 2009 Sport Supply Group profit rises, though sales fallDALLAS — Uniform and gear maker Sport Supply Group Inc. said on Thursday that its fourth-quarter profit rose 26.8 percent as it cut costs, even though sales fell.
20 Sears toys will offer toys on Saturday from Hasbro, Mattel and other toy makersAugust 12th, 2009 Sears to offer toys in 20 storesHOFFMAN ESTATES, Ill. — Sears Holdings Corp., the retail chain lead by chairman and hedge fund financier Eddie Lampert, said Wednesday it will begin to offer toys in 20 of its Sears stores starting Saturday.
Amazon 2nd-qtr profit declines due to Toys R Us dispute settlement chargeJuly 23rd, 2009 Amazon 2Q profit falls with Toys R Us settlementSEATTLE — Amazon.com says second-quarter earnings fell while sales rose. That's because of a $51 million payment to settle a long-standing dispute with former partner Toys R Us.
F5 Networks net income rises in 3rd quarter, ahead of expectations, on better salesJuly 23rd, 2009 F5 Networks 3rd-quarter profit risesSEATTLE — F5 Networks Inc., which makes products that manage and route computer network traffic, said Wednesday profit for the fiscal third quarter rose 19 percent as demand appeared to stabilize. Its shares rose $1.42, or 4 percent, to $37.25 during aftermarket trading.
Weis Markets 2nd-quarter profit climbs on improved sales of perishables, private label itemsJuly 20th, 2009 Weis Markets 2Q profit rises on increased salesSUNBURY, Pa. — Weis Markets Inc., which runs supermarkets in five mid-Atlantic states, said Monday that its second-quarter profit climbed 19 percent on improved sales of perishables and private label items.
Mattel 2nd-quarter sales sink but results beat analyst expectations on cost-cuttingJuly 17th, 2009 Mattel 2Q profit rises 82 percent on cost-cuttingEL SEGUNDO, Calif. — Light on summer-movie tie-in toys this year, Mattel Inc.
Baxter International's 2nd-quarter profit rises 8 percent as better margins offset sales dropJuly 16th, 2009 Baxter 2Q profit rises 8 percent on marginsDEERFIELD, Ill. — Specialty drug and medical device maker Baxter International Inc.
H&M 2Q profit rises 6.4 percent, helped by new store openings and weaker Swedish kronaJune 25th, 2009 H&M 2Q net profit rises 6.4 pctSTOCKHOLM, Sweden — Swedish fashion chain Hennes & Mauritz on Thursday said net profit in its latest fiscal quarter rose 6.4 percent, helped by new store openings and a weaker Swedish krona. Europe's second-largest fashion retailer said net profit in the three months to May 31, its fiscal second quarter, increased to 4.2 billion kronor ($534 million) from 3.9 billion in the same period a year ago.
SAIC 1st-quarter profit rises 13 percent on strong revenue growth; backs outlookJune 3rd, 2009 SAIC 1st-quarter profit rises 13 percentWASHINGTON — SAIC Inc. says its first quarter profit grew 13 percent as revenue soared on U.S.
Stec 1st-quarter profit, sales grow, surpassing analysts' expectationsMay 11th, 2009 Stec posts better-than-expected 1Q resultsSANTA ANA, Calif. — Memory chip maker Stec Inc.
Consumer products maker Unilever reports 45 percent fall in 1st-quarter net profit, sales dipMay 8th, 2009 Unilever first-quarter net profit falls 45 percentAMSTERDAM — Unilever NV, the maker of consumer products such as Dove soaps and Ben & Jerry's ice cream, has reported a 45 percent fall in net profit for the first quarter, as sales dipped and restructuring costs increased. The company says net profit was euro731 million, down from euro1.34 billion.
MillerCoors 1st-quarter profit climbs, brand sales helped by increased pricingMay 5th, 2009 MillerCoors 1Q profit rises on better pricingDENVER — Molson Coors Brewing and SABMiller say first-quarter profit for their U.S. joint venture MillerCoors rose 51 percent as sales of Coors Light, Miller Lite and other brands were helped by higher prices and fewer promotions.
Loading ...