Hasbro, Inc. (NASDAQ: HAS) reports first quarter earnings, with net revenues increasing 2% and stock rising by over 6% in published earnings today. This comes despite the adoption of FASB ASU No. 2016-09, the new provisions put in place to improve Employee Share-Based Payment Accounting.
As a result, first quarter 2017 was a 14-week period versus the first quarter 2016 which was a 13-week period. Given the timing of the week, the extra week adds and additional week of expense, but does not contribute a comparable level of revenue, making Hasbro’s recent boost all-the-more impressive.
"Hasbro remains in a strong financial position, with positive trends to start the year and a healthy balance sheet," said Deborah Thomas, Hasbro's chief financial officer. "As anticipated, operating profit in the quarter was negatively impacted by an extra week of expenses without the comparable revenue increase. This decline was more than offset by a favorable foreign exchange impact in non-operating income and the tax benefit from the new accounting standard.”
Net Earnings have soared 41% to $0.54 per diluted share, compared to $0.38 due to the “new accounting standard” and experienced a surge in Latin American revenue, largely offsetting European and Asian-Pacific decline with Entertainment and Licensing revenue jumping up 24%.
As optimism looms on the horizon, Hasbro has made $18.1 million in share repurchases. “Based on our first quarter's performance, our full-year expectations remain in line with our previously stated objectives." said Thomas.