Toymaker Hasbro 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 per cent in premarket trading.
Hasbro, like other US 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 Brian Goldner said in a statement.
Net earnings fell to $60.3 million, or 48 cents per share, in the second quarter ended July 1st, 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 IBES.
The company’s revenue fell 7 per cent to $904.5 million in the quarter, but was nearly half the drop that analysts were expecting. Analysts on average were estimating revenue of $833.1 million. – Reuters
