Hasbro: Frozen Themed Toys Crushed Earnings

Shares of American multinational toy and board game company, Hasbro, Inc. (NASDAQ: HAS) rose over 14 percent after posting strong earnings and revenue that beat analysts’ expectations, stating robust holiday demand for Disney’s Frozen-themed and princess dolls. The Rhode Island-based company reported financial results for the full-year and fourth quarter 2016. Net revenues for the full-year 2016 increased 13% to $5.02 billion versus $4.45 billion in 2015. Excluding a negative $61.0 million impact from foreign exchange, 2016 revenues increased 14%.

As reported net earnings for the full-year 2016 increased 22% to $551.4 million, or $4.34 per diluted share, compared to $451.8 million, or $3.57 per diluted share in 2015. Adjusted net earnings for the full-year 2016 were $566.1 million, or $4.46 per diluted share. Adjusted 2016 earnings exclude a pre-tax $32.9 million, or $0.12 per diluted share, non-cash fourth quarter goodwill impairment charge related to Backflip Studios. Adjusted full-year 2016 net earnings compares to 2015 adjusted net earnings of $445.0 million, or $3.51 per diluted share, which exclude a pre-tax gain of $9.6 million from the sale of the Company’s manufacturing operations in East Longmeadow, MA and Waterford, Ireland.

“Hasbro’s global team delivered a tremendous 2016. We reached the $5 billion revenue mark for the first time in company history, we improved profitability and we invested to grow Hasbro over the long-term while increasing our dividend and share repurchase levels,” said Brian Goldner, Hasbro’s Chairman, President and Chief Executive Officer. “Hasbro’s foresight to build brands led by storytelling, consumer insights and innovation, combined with the relentless execution of our Brand Blueprint including investments in entertainment and digital gaming, is driving our business and creating long-term strategic differentiators for Hasbro. We are well positioned for a successful 2017 and the continued advancement of Hasbro’s brand-building capabilities for years to come.”

“Our strong top line performance continued in the fourth quarter and we profitably grew Hasbro throughout the year,” said Deborah Thomas, Hasbro’s Chief Financial Officer. “Looking ahead, we are very well positioned to support our business. We continue investing in our industry-leading brands, our differentiated capabilities around the Brand Blueprint and in our systems to support long-term, cost efficient business growth. We ended the year with $1.28 billion in cash, inventories in line with last year, and we paid out $400 million to shareholders through dividends and share repurchases.”

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