You are using an older browser version. Please use a supported version for the best MSN experience.

Hasbro rockets higher after profit beats the Street

The Street logo The Street 4/23/2019 M. Corey Goldman

Shares of toy-making giant Hasbro surged on Tuesday after the company reported first-quarter earnings that handily beat analysts' estimates after losing one of its biggest customers, Toys "R" Us.

Shares of Hasbro jumped more than 15% in early trading.

Hasbro said its net earnings for its first quarter came in at $26.7 million, or 21 cents a share, compared with a net loss of $112.5 million, or 90 cents a share, a year earlier. Analysts polled by FactSet had been expecting a net loss of 11 cents a share.

The year-earlier loss included after-tax expenses of $61.4 million, primarily bad debt, associated with the closure of Toys "R" Us stores in the U.S., $15.7 million of severance costs related to the company's re-organization and a net charge of $47.8 million related to U.S. tax reform.

Revenue for the quarter was $732.5 million vs. $716.3 million in the first quarter of 2018.

$HAS Reports Q1 2019 Financial Results

— Hasbro (@Hasbro) April 23, 2019

Operating profit was driven by the company's focus on its digital and e-sports initiatives, including Magic: The Gathering Arena, as well as growth in Magic: The Gathering, tabletop revenues, Hasbro said. Sales of its well-known core products such as Monopoly, Play-Doh and Transformers also helped bolster revenues during the quarter, the company said.

"We are beginning to see improvement in our commercial markets, notably in the U.S. and Europe, and operating profit was driven by high margin revenue growth and our cost-savings activities," Hasbro CEO "Brian Goldner said in a statement. "With most of the year ahead of us, we remain on track to deliver profitable growth for the full-year 2019."


More From The Street

image beaconimage beaconimage beacon