Hasbro records upbeat performance results fueled by higher sales of Frozen 2 and Star War toys

Hasbro said on Tuesday that more than expected sales of Frozen 2 and Star Wars toys helped fuel optimism in its quarterly performance results. The upbeat earnings report saw the shares trading higher in the stock market on Tuesday.

In the fourth quarter, Hasbro announced its net income at $267.3 million that was sharply higher than $8.8 million that it recorded in the same quarter last year. Thanks to the increase in foreign currency hedging, the one-time benefit saw $102.5 million of additional earnings for the company in the recent quarter.

Hasbro’s Figures Versus Analysts’ Estimates

According to Refinitiv, analysts were expecting to make 91 cents of earnings per share in the fourth quarter. In its report on Tuesday, however, the company reported a much higher $1.24 of earnings per share (excluding items). At $1.43 billion, net revenue recorded a 2.8% increase in the recent quarter but marginally failed to hit the analysts’ estimate of $1.44 billion.

Hasbro was reported trading 4% higher on Tuesday in early trading. The stock closed on Tuesday at around $100 per share in the stock market. Despite the gain, however, the company is still trading around 5% lower as compared to the opening level in January 2020. The annual gain last year in Hasbro’s stock was around 30%. The American entertainment company printed a record high of around $125 in July 2019 but closed the year much lower at around $105.

Hasbro also announced to have generated $408.5 million revenue from toy sales based on multiple entertainment franchises. This marked a 50% increase in the divisional revenue in the fourth quarter.

Hasbro Says Partnership With Disney Is Paying Off Well

The partner brand (dealing in entertainment franchises’ toys) noted $1.22 billion in revenue for fiscal 2019 that translates to a massive 24% growth. The company cited Avengers, Star Wars, Frozen 2, and Spider-man franchises to have contributed the most to the increased revenue in 2019. Hasbro is the owner of a master toy license for Star Wars, Disney’s Marvel, Frozen 2, and a range of Disney’s princesses collection.

The optimism in Hasbro’s earnings report driven from multiple Disney character toys is proof that the company’s partnership with Disney is lucratively paying off. As per retailers, it is easier for licensed brands to attract customers since children love reenacting scenes from their favorite movies. CEO Brian Goldner also reiterated that partnering with Disney has come out to be very successful for the company.