Companies and Brands

Hasbro Posts Record Q3 Results as Demand for 'Girls' Toys Surges

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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.

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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