Hasbro Hits Record High as ‘Profitable Growth’ Target on Track

(Bloomberg) -- Hasbro Inc. reported second-quarter profit and sales that exceeded analysts’ projections as shoppers snapped up Avengers and Aladdin toys following the latest blockbuster film releases. Shares surged to the highest intraday level on record..Revenue for the world’s largest publicly traded toymaker was $984.5 million, the second straight quarterly gain. Chief Financial Officer Deborah Thomas reiterated that Hasbro expects to return to profitable growth in 2019..Key Insights.The company said its entertainment slate continued to improve, buoyed by the recent releases of “Avengers: Endgame” and “Aladdin,” whose toys it sells. Hasbro also has toy licenses for popular franchises such as “Frozen” and “Star Wars,” which will see new films this holiday season.Magic the Gathering led gains in revenue from Hasbro’s so-called franchise brands. Chief Executive Officer Brian Goldner told analysts he expects growth and “really substantial” engagement in the digital version of the game, Magic: the Gathering Arena, which will become available later this year.Hasbro also reported an improvement in its margins. The results show the company is finally recovering from the effects of Toys “R” Us’s liquidation -- a key hurdle for the company.Tariffs still represent an area of uncertainty: China-made toys are on the list of items that could be hit with duties if the U.S. and China don’t reach a trade deal. Goldner said just under two-thirds of its U.S. goods are currently produced in China, and that could drop to about 50% by the end of 2020..Market Reaction.The shares rose as much as 10% to $119.72, touching the highest level since at least 1980. The stock had gained 34% this year through Monday’s close..Get More.For more details, click here.For company statement, click here..To contact the reporter on this story: Joe Deaux in New York at jdeaux@bloomberg.net.To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder, Thomas Mulier.©2019 Bloomberg L.P.

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Hasbro Hits Record High as ‘Profitable Growth’ Target on Track

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