- Earnings excluding items: $1.24 per share vs $0.91 per share
- Revenue: $1.43 billion vs $1.44 billion, up 2.8% from a year ago
- Sales of “Frozen 2,” “Avengers,” “Spider-Man” and “Star Wars” toys contributed strongly to a great fourth-quarter performance
Shares of Hasbro, the largest toy maker in the world by market cap, soared higher in after hours, after the company announced higher-than-expected fourth-quarter results. Accordingly, the company posted earnings (excluding items) of $1.24 per share, much higher than $0.91 expected by analysts.
The net income was reported at $267.3 million, substantially higher than the $8.8 million a year earlier. In addition to a great sales performance, the difference in income was also boosted by gains in foreign currency hedging, which accounted for $102.5 million.
“2019 was a pivotal year for Hasbro. We achieved our plan to profitably grow revenues, performing well in a dynamic retail and global trade environment. We ended the year with good momentum in many markets and across brands, which is carried forward to the start of 2020,” said Brian D. Goldner, Hasbro’s Chief Executive Officer.
Revenue also rose 2.8% to $1.43 billion, however, slightly below the market estimates of $1.44 billion. Hasbro’s management outlined that strong sales of its main products, namely “Frozen 2,” “Avengers,” “Spider-Man” and “Star Wars”, contributed strongly to a great fourth-quarter performance.
Goldner added that the partnership with Disney is proving to be “very successful”, as the company is now less reliant on retail stores to sell its products. He believes that new shows on Disney+, such as the new season of “The Clone Wars” and “The Mandalorian” season two, make his company excited about the future.
Understandably, analysts were interested in the impact that the coronavirus may have on the company’s business. Goldner said that today the impact is “small”.
“Impact to our business today is small, but it’s challenging to quantify the potential magnitude at this time, as it will depend on how long it takes to contain the outbreak. If it takes a significant period of time to control, there could be a larger impact of our business,” added Deb Hancock, senior vice president of investor relations for Hasbro.
Shares of Hasbro closed -0.79% yesterday. They are trading more than 5% lower since the beginning of the year.