Hasbro, Inc. (NASDAQ: HAS) reported its first quarter financial results on Tuesday and reported an unexpected profit for the quarter. The better-than-expected results sent shares surging by 15.4%
For the first quarter, Hasbro reported diluted earnings of USD 0.21 on revenue of USD 732.5 Million. Hasbro saw its revenue increase by 2% year-over-year. Notably, the Company’s net earnings saw stronger growth compared to a net loss of USD 0.90 per share the same period a year prior.
The stronger-than-expected quarter was primarily led by the 1% sales growth in Hasbro’s U.S. and Canadian market. Despite the marginal increase, the two regions alone account for almost half of the Company’s revenue. International revenue declined by 2%, while Entertainment, Licensing, and Digital revenue rose by 24% year-over-year.
Hasbro’s franchise brands delivered revenue of USD 393.6 Million, increasing by 9% year-over-year. The Company’s partner brands fell by 14% year-over-year. However, Hasbro’s gaming revenue rose by 2%, while its emerging brands increased by 22%.
The Company’s franchise brand was fueled by revenue from Magic: The Gathering, Monopoly, Play-Doh, and Transformers sales. Gaming revenue was driven by sales of Duel Masters, Connect 4, and Twister. Meanwhile, emerging brands revenue was accelerated by the revenue in collectibles, Supersoaker, Furreal Friends as well as initial shipments of Power Rangers in North America.
“Our long haul interests in new stages gave an important commitment from our advanced and e-sports activity, Magic: The Gathering Arena, just as development in MAGIC: THE GATHERING tabletop incomes. Also, MONOPOLY, PLAY-DOH, and TRANSFORMERS were among the brands posting income picks up this quarter,” said Brian Goldner, Hasbro’s Chairman, and Chief Executive Officer.
“We are starting to see improvement in our business markets, eminently in the U.S. Furthermore, Europe, and the working benefit was driven by high edge income development and our cost funds exercises. With the greater part of the year in front of us, we stay on track to convey gainful development for the entire year 2019.” finished up Goldner.
Be that as it may, Goldner said in a FactSet transcript that purpose of-offer examinations will remain a test for the first of the new year as Toys “R” Us moved into liquidation around the U.S.
Notwithstanding, examiners still observe upside for the toy organization pushing ahead. MKM Partners analysts called the results a “solid beat” in the year’s smallest quarter and now hold a bullish stance on the stock. MKM analysts placed a buy rating with a price of USD 102 on Hasbro’s stock.