Hasbro Posts Record Q3 Results as Demand for ‘Girls’ Toys Surges

By Chris Lange Updated Jan 13, 2:19AM EST · Published Oct 17, 8:35AM EDT

Hasbro Posts Record Q3 Results as Demand for ‘Girls’ Toys Surges — © Thinkstock

Hasbro Inc. (NASDAQ: HAS) reported its third-quarter financial results before the markets open on Monday. The company said that it had $2.03 in earnings per share (EPS) on $1.68 billion in revenue. The consensus estimates from Thomson Reuters had called for $1.74 in EPS and revenue of $1.56 billion. In the same period of last year, Hasbro posted EPS of $1.58 and $1.47 billion in revenue.

In terms of segment revenues, the company reported that its Boys category revenues increased by 2% to a total of $605.5 million from the same period last year. The Games category revenues grew by 13% to $409.5 million, and the Girls category grew 57% to $462.0 million. The only segment posting a loss was preschool, which was down 8% to $202.8 million.

During this quarter, the company paid $64.0 million in cash dividends to shareholders. The next quarterly cash dividend payment of $0.51 per common share is scheduled for November 15, to shareholders of record at the close of business on November 1.

On the books, Hasbro cash and cash equivalents totaled $830.37 million at the end of the quarter, up from $551.29 million in the same period from last year.

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Brian Goldner, board chair, president and chief executive of Hasbro, commented:

Innovative play experiences, engaging storytelling and global execution of Hasbro’s Brand Blueprint continues to drive consumer and retailer demand for our brand portfolio. 2016 has been a strong year, including our third quarter – which marked the greatest revenue and earnings quarter in Hasbro’s history. We are well positioned for what we believe will be a good holiday season.

Deborah Thomas, chief financial officer, added:

Throughout 2016 the Hasbro team has delivered strong financial performance, in terms of revenues and earnings growth, supported by a solid balance sheet enabling our business growth. The strength of our business enabled us to continue investing in growing Hasbro for the long term, while returning $112 million to shareholders in the quarter.

Shares of Hasbro closed Friday at $76.16, with a consensus analyst price target of $87.50 and a 52-week trading range of $64.91 to $88.53. Following the release of the earnings report, the stock was up over 5% at $80.26 in early trading indications Monday.

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About the Author Chris Lange →

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.