(Reuters) – US toy manufacturer Hasbro Inc. ( HAS.O ) surpassed expectations for quarterly earnings and earnings on Monday as Marvel toy sales contributed to recovering ground lost the year before. US bankruptcy, his shares send as much as 14 percent.
Play-Doh and Monopoly's manufacturer's earnings outlook was nearly half of what they wrote in the earnings release a year ago, mainly due to concerns over the disappearance of its largest retail partner.
In this case, net income fell 11 percent to $ 60.3 million, or 48 cents a share, but far behind analyst estimates of 29 cents a share – the largest increase in nearly two years, according to Thomson Reuters I / B / E / S.
"We do not expect to regain all revenue losses in 201
Toys & # 39; R & # 39; Us accounted for 10 percent of all Hasbro sales and the company quickly switched to relocate inventory to Walmart ( WMT.N ), Target ( TGT.N ) and others. Partnerships with major media producers such as Walt Disney ( DIS.N ) also helped.
The company also created exclusive products and programs online to support retailers and retail events such as the JD.com JD Day, Amazon Prime Day, and the November 11 Alibaba Singles Day.
The company announced that it was due to higher sales of a Marvel portfolio benefited from two of last year's biggest theatrical hits, Avengers: Infinity War and Black Panther.
Revenues in the company's three main businesses exceed estimates by the data firm FactSet based on forecasts from three industry analysts.
D.A.. Davidson analyst Linda Bolton Weiser said Hasbro's performance was extremely good this quarter and that it should be a really strong year.
"They will mitigate much of the loss in the third and fourth quarters," she said.
The company's total revenue decreased 7 percent to $ 904.5 million in the quarter, but nearly half of analysts' expected decline. Analysts estimate sales on average at $ 833.1 million.
The only segment that saw a direct increase in revenue was the entertainment and licensing business, which rose nearly 26 percent to $ 64.7 million in the quarter.
"While product sales were weak in the second quarter, the benefits of entertainment and licensing provided a significant balance," said Jefferies analyst Stephanie Wissink in a statement.
Equities of rival Mattel Inc ( MAT.O ) were also traded 4 percent at $ 16.58.
Reporting by Uday Sampath and Nivedita Balu in Bengaluru; Writing by Sweta Singh; Edited by Arun Koyyur