Hasbro: 2010 Growth In EPS, Revenue May Be Back-End Loaded
February 12 2010 - 11:25AM
Dow Jones News
Hasbro Inc. (HAS) on Friday reiterated its expectation for 2010
revenue growth and the company's 10th year in a row of per-share
earnings growth, although executives warned quarterly results may
be choppy.
"You should not necessarily expect revenue and EPS growth in
every quarter," Chief Operating Officer David Hargreaves said
during a presentation to analysts that was broadcast on the Web.
"Without the pipeline filling for Transformers and G.I. Joe to
drive shipments in the first half and with many [new toy] product
introductions in the fall, like Beyblade, we expect 2010 will be
more back-half loaded."
Hasbro's financial results in the first half of 2009 benefited
as the toy maker shipped products to retailers that were tied in
with the movie hits "Transformers 3" and "G.I. Joe." Together,
those movies generated about $725 million in 2009 sales for
Hasbro.
This year, Hasbro will be shipping toys tied to the movie,
"Ironman 2," in the first half, but executives don't expect that
movie to generate as much in toy sales as Transformers. Meanwhile,
it plans to relaunch Beyblade, which was popular in 2003, in the
fall.
Hasbro also reiterated its medium-term objectives for 5%
compound annual growth in revenue or better, and for operating
margins to be at least 15%.
Input costs for 2010 aren't expected to affect overall
profitability, and foreign exchange should have a favorable impact
on results, Hargreaves said.
Executives said they continue to expect costs tied to Hasbro's
joint-venture children's television network and its studio will
hurt 2010 earnings by between 25 and 30 cents a share.
President and Chief Executive Brian Goldner said the creators of
the first two Transformers movies are working on a new show for the
TV network, which is called the Hub and is a joint venture with
Discovery Communications (DISCA). That show will begin in the
fall.
The creators of other TV shows, including "Rugrats," "Clone
Wars" and "Ben 10" are also working on new shows for the Hub,
Goldner said.
-By Mary Ellen Lloyd, Dow Jones Newswires, 704-948-9145;
maryellen.lloyd@dowjones.com