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BREAKING NEWS

Hasbro results beat on higher demand for 'Avengers: Endgame' toys

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(Reuters) – Toymaker Hasbro Inc <HAS.O> beat estimates for quarterly results on Tuesday, boosted by higher demand for action toys following the success of “Avengers: Endgame” and Magic: The Gathering collectible card game.

Disney’s “Avengers: Endgame”, the end of a decade-long superhero series featuring Iron Man, Hulk and other popular comic book superheroes, claimed the top spot of the global box office all-time chart, spurring toy sales.

Hasbro has been cashing in on tie-ups with movie studios such as Paramount Pictures and Walt Disney Co <DIS.N> to boost sales of toys linked to big movie franchises as the company recovers from the bankruptcy of toy retailer Toys “R” Us last year.

As a result, revenue from the partner brands climbed 3% to $213.4 million (£171.5 million) in the second quarter.

Revenue from franchise brands, its largest business, rose 14%, driven by Magic: the Gathering, Monopoly, Play-doh and Transformers toys.

Net revenue rose 8.9% to $984.5 million and beat the average analyst estimate of $956.8 million, according to IBES data from Refinitiv.

Net income fell to $13.4 million, or 11 cents per share, in the quarter ended June 30 from $60.3 million, or 48 cents per share, a year earlier, as the company took a pre-tax charge of $110.8 million to settle U.S. pension plan liability.

The company also spent more to move more inventory into the United States than usual as it faces “dynamic trade and inventory environment”, Chief Financial Officer Deborah Thomas said in a statement.

Excluding items, the company earned 78 cents per share compared with expectations of 50 cents per share.

Shares of the toymaker were up 4% in light premarket trading.

(Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur)

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