MAT

Hasbro (HAS) posted solid third-quarter revenue and earnings Monday that exceeded consensus expectations. Revenue jumped 2%, while operating profit improved 3% thanks to modest improvement in the firm’s operating margin. Adjusted net earnings of $1.31 per diluted share in the third quarter compares to $1.24 per share generated in the prior-year period, or more than a 5% increase. We were very pleased with management’s comments that brand initiatives are resonating well with consumers and that it has increased its presence in faster-growing geographies. Though performance in the US and Canada continues to languish as a result of weakness in the ‘Boys’ and ‘Preschool’ categories, the firm’s ‘International’ and ‘Entertainment and Licensing’ segments performed wonderfully. Image Source: Hasbro Sales in Europe, … Read more

Toymaker Mattel (click ticker for report: ) reported solid fourth quarter results Friday morning that were slightly worse than consensus estimates. Revenue grew 5% year-over-year to $2.3 billion, producing adjusted earnings per share of $1.13, also 5% higher than the year ago period. These results outpaced those of competitor Hasbro (click ticker for report: ), which missed the mark when it preannounced weak fourth quarter results in late January. Both domestic and international markets drove strength at Mattel, as North American sales jumped 5% year-over-year on a reported-basis (4% excluding currency) and International sales increased 8% year-over-year on a reported basis (10% excluding currency). Asia was incredibly strong, with sales jumping 27% year-over-year, and we think the future looks bright … Read more

After NPD reported solid toy sales during December, we thought the holiday season might be relatively strong for the major toymakers—including Lego, Hasbro (click ticker for report: ), and Mattel (click ticker for report: ). However, Hasbro announced last week that its fourth quarter revenue will be approximately $1.3 billion, below the consensus expectation of $1.4 billion. Earnings, net of restructuring charges, will be $2.73-$2.75 per share, well below the consensus estimate of $2.85 per share. We won’t know until the firm announces its results in February what caused the weakness, but we like the firm’s decision to reduce annual operating expenses by $100 million over the next three years. Since December seemed like a relatively strong month for the … Read more

Toymaker and dividend-growth gem Hasbro (click ticker for report: ) reported better than expected earnings and revenue that was in-line with consensus estimates Monday morning. The firm saw revenue remain roughly flat at $1.35 billion but grow 1%, if adjusted for negative currency impacts. Earnings per share fell 2% to $1.24. We thought results might be a little stronger than reported after Mattel’s (click ticker for report: ) strong earnings, but we still think the quarter was solid. Revenue in the US grew only 1% to $774.5 million, but operating profits surged 20% year-over-year to $154.2 million. The firm’s focus has clearly yielded positive results. Net of currency impacts, international toy revenues were up 1% as well, though down 7% … Read more

Hasbro faced a number of challenges in its second quarter, but earnings still exceeded expectations. We continue to like this dividend-growth gem.

Dividend-growth portfolio holding Hasbro reported lackluster first-quarter results in April, but the company’s recent success of ‘The Avengers’ could propel earnings in the second and third quarters ahead of consensus estimates. We think Hasbro looks very compelling at current levels.