(Reuters) – Toymaker Hasbro Inc (HAS.O) topped Wall Street estimates for profit and revenue in the second quarter as it emerged from the worst effects of last year’s Toys ‘R’ Us bankruptcy, sending its shares up nearly 7 percent in premarket trading.
FILE PHOTO: A Monopoly board game by Hasbro Gaming is seen in this illustration photo August 13, 2017. REUTERS/Thomas White/Illustration/File Photo
Hasbro, like other U.S. toymakers, was hit hard by the sooner-than-expected collapse of Toys ‘R’ Us and had said it would get through the worst by the latter half of the year.
“We are focused on moving beyond the near-term disruption of losing a major customer, with a clear path forward including new retailer activations to meet the consumer demand made available by the Toys ‘R’ Us departure,” Chief Executive Officer Brian Goldner said in a statement.
Net earnings fell to $60.3 million, or 48 cents per share, in the second quarter ended July 1, from $67.7 million, or 53 cents per share, a year earlier.
Analysts had expected earnings of 29 cents per share, according to Thomson Reuters I/B/E/S.
The company’s revenue fell 7 percent to $904.5 million in the quarter, but was nearly half the drop that analysts were expecting. Analysts on an average were estimating revenue of $833.1 million.
Reporting by Uday Sampath and Nivedita Balu in Bengaluru; Editing by Arun Koyyur