Hasbro shares boosted due to ‘Star Wars’ items
Hasbro Inc. shares rose as much as 6.8 percent after quarterly earnings topped analysts’ estimates, boosted by demand for “Star Wars”-licensed toys and its own Nerf and Play-Doh properties.
Profit increased to 38 cents a share in the first quarter, which ended March 27, the Pawtucket, Rhode Island-based company said on Monday. Analysts had projected 24 cents. Revenue rose 16 percent to $831.2 million, beating the $779.3 million projection.
Hasbro’s sales surged in both its boys and girls categories, helping make up for a slump in its board-game division. The company also has hitched its fortunes to Walt Disney Co.’s entertainment franchises. Toys based on “Star Wars,” and Disney princesses fueled growth last quarter, Hasbro said.
“Demand for Star Wars: The Force Awakens’ products continued to be high, and we benefited from the addition of Disney Princess and Frozen’ fashion and small dolls,” Chief Executive Officer Brian Goldner said in a statement. “We are very encouraged with global demand and our outlook for 2016.”
The shares rose as high as $88 in New York after the results were posted, marking the biggest intraday gain since July. Hasbro had already gained 22 percent this year through the end of last week, putting the stock in record territory.