Hasbro's Q3 earnings and profit up, beat expectations

Toymaker Hasbro posted better-than-expected third-quarter earnings on Monday thanks to a strong performance from the Games and Girls segments.

Net earnings came in at $257.8m, or $2.03 per diluted share, up from $207.6m or $1.64 in the same period a year ago.

Meanwhile, revenue was up 14% to $1.68bn, with growth in all major operating segments. Hasbro said revenues included a negative $2.8m impact from foreign exchange.

Analysts had been expecting earnings of $1.74 on revenue of $1.56bn.

Net revenue in the US and Canada was up 16% to $932.8m, while the International segment saw revenue rise 13% to $690.7m. The Entertainment and Licensing business saw revenue climb 8% to $56.1m.

The company said revenue growth in the Girls and Games category more than offset declines in the Preschool category and limited growth in Boys.

Girls revenue was up 57% to $462m, while Games revenue rose 13% to $409.5m. Boys revenue was up just 2% at $605.5m while the Preschool category saw an 8% drop to $202.8m.

Chairman, president and chief executive Brian Goldner said: "Innovative play experiences, engaging storytelling and global execution of Hasbro's Brand Blueprint continues to drive consumer and retailer demand for our brand portfolio.

“2016 has been a strong year, including our third quarter - which marked the greatest revenue and earnings quarter in Hasbro's history. We are well positioned for what we believe will be a good holiday season.”

At 1228 BST, Hasbro shares were up 3.4% in pre-market trade to $78.75.