Hasbro Inc. reported higher fourth-quarter sales as toys based on 'Frozen 2' and Star Wars helped the toymaker overcome the fallout from President Donald Trump’s trade war with China.
Revenue rose to US$1.43 billion, Pawtucket, Rhode Island-based Hasbro said Tuesday. Analysts predicted US$1.44 billion. The company also posted profit of US$1.24 cents a share, excluding some items, beating estimates of 88 cents.
Key Insights
• Hasbro has bounced back after the threat of tariffs weighed on the third quarter, disrupting the company’s supply chain and leading some retailers to cancel shipments.
• Revenue in the entertainment, licensing and digital segment rose 22 per cent last year. Hasbro recently completed a US$4-billion, all-cash purchase of British production and distribution company Entertainment One Ltd., giving it access to new content with brands like Peppa Pig and PJ Masks.
• 'Magic: The Gathering Arena' and the 'Transformers: Bumblebee' films helped drive entertainment and licensing revenue. Analysts forecast Hasbro bested its rival Mattel Inc. over the holiday season, with a strong showing from Frozen and Star Wars branded products.
Market Reaction
Hasbro shares rose 9.3 per cent in pre-market trading.
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