'Frozen,' Disney Princess Toys Help Hasbro to Record Quarterly Results

Oct 18, 2016, 00:38
'Frozen,' Disney Princess Toys Help Hasbro to Record Quarterly Results

Toy giant Hasbro (HAS) on Monday reported third-quarter net income that beat Wall Street estimates thanks to gains in toys designed primarily for young girls, sending futures higher in premarket trades.

Overall, the Pawtucket, R.I., based company posted a profit of $257.8 million, or $2.03 a share, up from $207.6 million, or $1.64 a share, a year prior.

"Hasbro and our retailers are well positioned to deliver on what we expect to be a strong holiday season", Chief Executive Brian Goldner said Monday.

The company, which now stands as the second largest toymaker in the country, said that revenue from the high-growth girls' toys category increased 57 percent to $462 million - thanks to high demand for Disney Princess, Frozen and Dreamworks' Trolls-themed doll products.

Hasbro's games category also grew, with revenue up 13 percent due to strong sales of Pie Face, Magic: The Gathering, and Duel Masters.

Net revenues for the third quarter increased 14 percent to $1.68 billion from $1.47 billion in 2015. The stock has increased more than 20 percent since the beginning of the year. The film franchise's newest addition, "Rogue One", is expected to generate a similar amount of revenue during the fourth quarter, as the movie's release date is December 16.

Toys marketed to boys generated $605.5 million, representing a two percent increase compared to the same quarter previous year.

Hasbro shares rose 7% in recent trading to $81.60. The Games category revenues grew by 13% to $409.5 million, and the Girls category grew 57% to $462.0 million.

Further, the company said the next quarterly cash dividend payment of $0.51 per share is scheduled for November 15 to shareholders of record at the close of business on November 1.

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