Games and toys manufacturer Hasbro, Inc. (HAS) reported Monday a profit for the fourth quarter that edged down from last year, as strong international performance was more than offset by higher income tax expenses.
However, earnings per share grew and topped analysts' expectations by a penny, while quarterly revenues missed their estimates by a whisker. The company also noted that it would be able to grow revenues and earnings per share for the full-year 2012, excluding currency effect.
Following the announcement, the company's stock is trading down nearly 5.5 percent in pre-market trading.
The Pawtucket, Rhode Island-based maker of Transformers and G.I. Joe toys reported net earnings of $139.13 million or $1.06 per share for the fourth quarter, compared to $140.01 million or $0.99 per share in the prior-year quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $1.05 per share for the fourth quarter. Analysts' estimates typically exclude special items.
Net revenues for the quarter increased 4 percent to $1.33 billion from $1.28 billion in the same quarter last year, but missed eleven Wall Street analysts' consensus estimate of $1.34 billion by a whisker. Foreign exchange had a negative impact of $13.3 million.
U.S. and Canada regions reported net revenue of $592.79 million, down 2 percent from the year-ago quarter, while net revenues for the international segment increased 8 percent to $669.79 million from the prior-year quarter. Entertainment and licensing segment, including television, movies, lifestyle and digital licensing and on-line entertainment operations, net revenue rose 20 percent to $64.09 million from last year.
Among the product families, boys products sales were $536.27 million, up 29 percent from the year-ago quarter, while games and puzzles sales declined 11 percent to $370.61 million from last year. Girls products posted a sales decline 16 percent to $249.98 million from the prior-year quarter, while preschool products sales grew 15 percent to $169.81 million from a year ago.
Operating profit for the quarter increased to $216.59 million from $201.05 million in the prior-year quarter, while selling, distribution and administration expenses decreased to $202.16 million from $228.26 million in the year-ago quarter. Income tax expense grew to $50.01 million from $33.37 million in the previous year.
On Thursday, Hasbro announced a 20 percent increase in quarterly cash dividend to $0.36 per common share, payable on May 15 to shareholders of record at the close of business on May 1, 2012.
For fiscal 2011, Hasbro reported net earnings of $385.37 million or $2.82 per share, compared to $397.75 million or $2.74 per share posted in the prior year. Analysts expected the company to report earnings of $2.77 per share for fiscal 2011.
Net revenues for the full year grew 7 percent to $4.29 billion from $4.00 billion reported in the previous year. Street was looking for full-year 2011 revenues of 4.30 billion. Net revenues increased only 5.5 percent excluding the positive $64.3 million impact of foreign exchange.
Looking ahead to fiscal 2012, the company said it anticipates to again grow revenues and earnings per share, both excluding the impact of foreign exchange. Street is currently looking for full-year 2011 earnings of $3.10 per share on annual revenues of $4.42 billion.
"We are confident that through the execution of our branded-play strategy Hasbro is well positioned to deliver the innovation and brand experiences that our global consumers want and that will drive long-term value for our shareholders," President and CEO Brian Goldner said in a statement.
HAS closed Friday's regular trading session at $35.86, up $0.12 on a volume of 1.90 million shares, higher than the three-month average volume of 1.71 million shares. In the past 52-week period, the stock has been trading in a range of $31.36 to $48.43.
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