Hasbro Soars on Better Than Expected Second Quarter Results

Hasbro shares were on the rise in Monday’s trading session after the toy maker reported second quarter results that beat expectations and showed the company is rebounding from Toys “R” Us liquidating.

For the quarter, revenue fell 7 percent to $904.5 million in the quarter. Analysts had been expecting revenue of $844.2 million. Earnings of $60.3 million, or 48 cents, was also higher than the 29 cents expected.

Shares saw gains as high as 14% on the earnings report.

Company CFO Deborah Thomas, stated, “Our global teams executed well despite the disruption in the market.”

Chairman and CEO Brian D. Goldner, stated on the earnings call, “2018 is unfolding as expected, as our teams manage the liquidation of Toys “R” Us in many markets and address the rapidly evolving European retail landscape. As anticipated, revenues were down in the quarter, reflecting both lower Toys “R” Us revenues and the impact of its liquidation on the marketplace. Importantly, consumer takeaway remains positive, and retailer inventories declined. We were ranked #1 in the G11 markets every month in 2018 through May according to NPD, and we are investing to deliver break-frame innovation, compelling entertainment and a modern commercial organization. We’ve also maintained good operating margins despite expense deleverage resulting from lower revenues.”

“We don’t expect to recapture all of the loss (of) revenue in 2018, but by 2019, we should have moved beyond Toys ‘R’ Us,” Goldner also said.

Disclaimer: We have no position in Hasbro, Inc. (NASDAQ: HAS) and have not been compensated for this article.