Are Franchise Brands Enough to Lift Hasbro Earnings?
Hasbro reported better than expected quarterly results before the markets opened on Monday, due in part to Star Wars toys.
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When Hasbro Inc. (NASDAQ: HAS | HAS Price Prediction) reported its third-quarter financial results before the markets opened on Monday, the toymaker said that it had $1.88 in earnings per share (EPS) and $1.78 billion in revenue. The consensus estimates had called for $1.62 in EPS and revenue of $1.73 billion, and the same period of last year reportedly had EPS of $1.84 on $1.58 billion in revenue.
During the latest quarter, the revenue and operating profit in the U.S. and Canada segment grew due to gains in Franchise Brands, led by Magic: The Gathering, as well as growth in Emerging Brands and Hasbro Gaming.
Hasbro products for Lucasfilm’s Star Wars and The Mandalorian also delivered strong revenue growth in the quarter.
Revenues and operating profit declined in the International segment, driven by declines in Latin America. However, European revenues did see growth.
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In terms of its segments, the company reported as follows:
- Franchise Brands net revenues rose 4% year over year to $807.6 million.
- Partner Brands net revenues decreased by 4% to $409.2 million.
- Hasbro Gaming net revenues increased 3% to $239.2 million.
- Emerging Brands net revenues fell 18% to $155.0 million.
- TV/Film/Entertainment net revenues decreased 28% to $165.7 million.
On the books, Hasbro’s cash and cash equivalents totaled $1.13 billion at the end of the quarter, up from $1.06 billion at the end of the same quarter last year.
The company offered no outlook in the report. However, consensus estimates are calling for $1.14 in EPS and $1.68 billion in revenue for the fourth quarter.
Hasbro stock traded down nearly 4% Monday morning to $88.69. The consensus price target is $93.86, and the 52-week trading range of $41.33 to $109.50.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
