Hasbro Inc.'s (HAS) third-quarter profit rose 3.2% on improved
revenue in most of its toy categories as results beat analysts'
expectations.
The toy maker's bottom line has been improving the past few
quarters as overall economic conditions stabilized and the company
reined in expenses.
As the company launched a children's television channel with
Discovery Communications Inc. (DISCA) earlier this month, capital
spending will pressure earnings this year by 25 cents to 30 cents a
share. Chief Financial Officer Deborah Thomas said Monday the
fourth quarter will show the biggest impact.
Larger rival Mattel Inc. (MAT) on Friday reported third-quarter
profit jumped 23%, led by offerings related to the blockbuster
movie "Toy Story 3," but results fell short of analysts'
estimates.
Hasbro reported a profit of $155.2 million, or $1.09 a share, up
from $150.4 million, or 99 cents a share, a year earlier. Shares
outstanding decreased 7%. Revenue increased 2.7% to $1.31 billion,
and rose 4% excluding currency changes.
Analysts polled by Thomson Reuters had most recently estimated
earnings of $1.04 and $1.29 billion in revenue.
Gross margin narrowed to 54.6% from 57%.
Hasbro's boys' segment, the biggest division by revenue in the
latest quarter, had a 4% sales increase while games-and-puzzles
division climbed 2%. Sales of preschool products rose 9% while
girls' product sales were down 1%. The entertainment segment posted
a 34% slump on last year's impacts from the "Transformers" and
"G.I. Joe" movies.
Shares of Hasbro, which still expects revenue and per-share
earnings growth for the year, closed at $45.08 Friday and were
inactive premarket. The stock has risen 41% this year.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com