NEW YORK – Hasbro turned in very strong quarter led by Transformers sales and other toys for boys.
The toymaker, weighed down by the strong U.S. currency and battling a shift toward video games and other non-traditional toys, topped Wall Street expectations and shares jumped almost 8 percent before the opening bell Monday.
If early gains hold, shares will hit another all-time high.
Hasbro reported a 17 percent drop in profit to $26.7 million, or 21 cents per share, compared with $32.1 million, or 24 cents a share, a year earlier. But that included an income tax expense of almost $8.5 million. The company recorded a benefit in excess of $5.5 million last year.
Operating profit actually increased 25 percent and analysts were expecting per-share profits of only 9 cents, according to a poll by Zacks Investment Research.
Revenue rose 5 percent to $713.5 million, also topping Wall Street projections for $668.3 million.
"We grew revenue, improved profitability and delivered growth in adjusted net earnings despite significant foreign exchange headwinds," said CEO Brian Goldner in a printed statement"
A negative foreign exchange impact of $62.6 million trimmed revenue in the quarter.
In addition to items geared toward boys, sales of toys for preschool aged children jumped 22 percent.
Yet revenue from girls toys, which has carried the company of late, fell 16 percent. The company cited declining sales of Furby and Easy Bake products.
The international segment remained flat and the entertainment and licensing unit saw the most gains.
Hasbro's results come a week after rival Mattel reported a first-quarter loss, but its earnings and revenue results still beat expectations.
Shares of Hasbro Inc., based in Pawtucket, Rhode Island, rose $5.10 to $70.99 in premarket trading. Hasbro shares have risen 20 percent since the beginning of the year.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on HAS at http://www.zacks.com/ap/HAS
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