Hasbro Returns to Q1 Profitability, Easily Beats Street Estimates

Hasbro reported Q1 net income of $32.9 million, or $0.19/share, compared to a net loss of $4.9m ($0.03/share) last Q1, and well head of analysts' average estimates of a breakeven quarter (Thomson) to EPS of $0.01 (Bloomberg). It was helped by "significantly" higher revenue across all major product categories in N. America, as total revenues rose 34% to $625.3m, versus a Street estimate of $508m (Thomson) to $512.3m (Bloomberg). N. American sales rose 36% and international sales increased 29%, while operating profit in the former segment grew nearly tenfold to $45.3m and loss narrowed to $108k, from $8.3m in the latter. Hasbro said it repurchased 2.5 million shares of common stock at a total cost of $74m during the quarter. Shares of Hasbro are up 6.75% to $32.25 in pre-market activity on thin volume of only 1,500 shares. It closed 0.27% higher on Friday to $30.21, renewing multi-year intra-day and closing highs.

Sources: Press release, Bloomberg, MarketWatch
Commentary: Hasbro, Inc.: Ahead of the Game • Mattel's Q1 Profit Drops, But Beats Street As Sales Increase 18.5% • Hasbro's 'Wizards of the Coast' Renews Lucasfilm Agreement
Stocks/ETFs to watch: Hasbro (HAS). Competitors: Mattel (MAT), JAKKS Pacific (JAKK)

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