Hasbro Profit Surges 77%, Tops Expectations

(RTTNews) - Games and toys manufacturer Hasbro, Inc. (HAS: News ) reported Monday a 77% year-over-year surge in profit for the fourth quarter, boosted by strong performance across all its operational segments and product categories.

The company's earnings per share and quarterly revenues topped analysts' expectations. Meanwhile, the company posted its ninth consecutive annual earnings per share growth. The company also noted that it would be able to grow revenues and earnings per share for the full-year 2010.

Hasbro has weathered the economic issues quite well thus far, by seeking out new revenue avenues like Hollywood, video gaming and casinos, to breathe life into its core toy brands. The company's pipeline for the next several years is pumping with licensees and theatrical releases. On the flip side, the company's top line may experience some volatility due to the tie-ins with movie releases.

In a statement, president and chief executive officer, Brian Goldner said, "We are extremely pleased with our fourth quarter and full-year results that demonstrate Hasbro's strategy is working. The Hasbro teams around the globe performed at a high level in 2009, delivering innovation and strong marketing programs to our consumers and retailers."

Fourth Quarter Results

The Pawtucket, Rhode Island-based maker of Transformers and G.I. Joe toys reported net earnings of $165.56 million or $1.09 per share for the fourth quarter, about 76% higher than $93.58 million or $0.62 per share in the prior-year quarter.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $0.81 per share. Analysts' estimates typically exclude special items.

For the fourth quarter, the company projected dilution in the range of $0.04 to $0.05 per share, due to the investment in the joint venture with Discovery Communications and Hasbro's virtual studio. Meanwhile, it also estimates the dilution in the range of $0.25 to $0.30 per share for fiscal 2010.

Net revenues for the quarter increased 12% to $1.38 billion from $1.23 billion in the same quarter last year, and topped twelve Wall Street analysts' consensus estimate of $1.34 billion. Excluding the positive foreign exchange impact of $55.4 million, quarterly revenues grew only 7%.

Among Hasbro's peers, El Segundo, California-based toys maker Mattel, Inc. (MAT: News ) reported late last month that profit for the fourth quarter surged 86% from last year, boosted by holiday sales of its popular brands such as Barbie and Hot Wheels besides lower costs. Net income was $328.4 million or $0.89 per share, compared to $176.4 million or $0.49 per share in the year-ago quarter. Quarterly net sales improved 1% to $1.96 billion from the previous year's sales of $1.94 billion, aided by a favorable impact from changes in currency exchange rates of 4 percentage points.

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