Transformers, Marvel toys drive Hasbro's profit beat
(Reuters) - Hasbro Inc HAS.O reported a better-than-expected quarterly adjusted profit, helped by demand for its toys for boys based on Transformers movies and characters from Marvel comics in the holiday shopping season.
Shares of the company, known for its My Little Pony toys and movie-based action figures, rose as much as 6.6 percent in early trading.
Sales of toys for boys, Hasbro's largest business, rose about 21 percent in the fourth quarter ended Dec. 28.
Hasbro's results were comparatively stronger than those of larger rival Mattel Inc (MAT.O: Quote), which last month posted its fifth straight fall in worldwide quarterly sales.
Hasbro's total revenue rose 1.3 percent to $1.30 billion.
If not for the stronger dollar, revenue would have increased 7 percent, the company said.
Mattel reported a 6 percent fall in sales to $1.99 billion in its latest quarter.
From 2016, Mattel will lose its license to make Walt Disney Co (DIS.N: Quote) Princess dolls, including those based on the blockbuster movie "Frozen", to Hasbro. Hasbro said on the earnings call that it began production of the dolls.
Hasbro's gross margin rose 2.3 percentage points to 60.2 percent, Stifel, Nicolaus & Co analysts wrote in a note. The gross margin growth was helped by sales of franchise brands such as Transformers, the company said. Continued...