Hasbro’s revenues jumped 12.8% in the third quarter.
The toy manufacturer reported a net profit of £169.26 million in the third quarter.
The U.S. multinational is seeing 50% growth in digital sales.
Hasbro Inc. (NASDAQ: HAS) on Monday released its third quarter fiscal quarter earnings report, which exceeded analysts’ estimates for profits and revenues. The stock jumped to an 8-month high as the company expressed confidence that shipments are likely to improve further in the fourth quarter.
The company’s shares jumped nearly 2% in pre-trade trading on Monday. At £70.50 per share, Hasbro’s share price on the stock exchange is still more than 10% below the previous year’s price, but has recovered by over 100% from a price per share of £34.27 in March due to the COVID 19 disruption. Trading stocks online is easier than you think. Learn how to buy shares online in 2020.
Hasbro’s financial results for Q3 compared to analysts’ estimates
Hasbro reported a net profit of £169.26 million for the third quarter, or £1.23 per share. This compares to net income of £163.13 million or £1.28 per share for the same quarter last year.
Adjusted for non-recurring items, the US multinational conglomerate earned £1.44 per share in the third quarter. According to FactSet, experts had forecast lower adjusted earnings per share of £1.25. Hasbro had reported a net loss of £26.36 million in the second quarter, according to the report published at the end of July.
In terms of revenue, the toy manufacturer recorded annualized growth of 12.8 percent to £1.36 billion in the third quarter. The FactSet consensus for third quarter revenue was slightly lower at £1.33 billion. The company attributed the increase to 9% revenue growth in the United States and Canada.
Hasbro also pointed out in its Monday report that digital sales showed a massive 50% increase in the last quarter. In contrast, eOne’s television and film revenues were under pressure in the third quarter due to the impact of the coronavirus pandemic on the entertainment industry.
CEO Brian Goldner’s comments on Monday
CEO Brian Goldner of Hasbro commented on Monday’s financial results and said
“Building on this quarter’s growth in toys, games and digital, we are able to offer a good vacation season. Live-action entertainment production is returning and we will improve deliveries in the fourth quarter and drive some of them into 2021”.
Hasbro performed quite well on the stock market last year, with an annual profit of more than 20%. At the time of writing this article, the Pawtucket-based company is valued at £9.66 billion and has a P/E ratio of 31.43.