PAWTUCKET, R.I. — Toy maker Hasbro said its second-quarter profit jumped 30 per cent, thanks to rising sales of Transformers action figures and Monopoly board games. But its revenue was slightly lower than what Wall Street analysts expected, and it reported weaker demand for Easy-Bake ovens and Playskool toys and softer sales in two international markets.
Shares of Hasbro Inc. tumbled 10 per cent to $104.26 in afternoon trading Monday, but are still up about 34 per cent so far this year.
Analysts at Jefferies said they were “undeterred” by Hasbro’s stock drop Monday, and said they expect the company’s earnings to grow in the next couple of years.
Hasbro said its Magic card games and Nerf blasters also performed well, while demand for Super Soaker water guns and Baby Alive dolls were weaker. It expects to sell more toys later this year when a My Little Pony movie and the latest “Star Wars” film are released.
The Pawtucket, Rhode Island-based company reported net income of $67.7 million, or 53 cents per share, in the three months ending July 2. That compares with $52.1 million, or 41 cents per share, in the same quarter a year ago. Those results topped Wall Street expectations, with the average estimate of five analysts surveyed by Zacks Investment Research for earnings of 46 cents per share.
Revenue rose 11 per cent to $972.5 million, just below the $973 million analysts expected, according to Zacks.
Although overall international revenue rose 6 per cent, Hasbro said sales in the U.K. and Brazil were soft due to economic conditions in those countries. Revenue in the U.S. and Canada rose 16 per cent.