No. 2 U.S. toy company Hasbro Inc. promised investors a “meaningful” rise in 2011 sales and earnings, despite missing profit estimates in the second quarter on higher costs.
The maker of Nerf foam toys, Transformers action figures and Monopoly board games, whose shares dipped 0.3 per cent, has been spending more to boost its overseas presence and develop its new television channel, The Hub. It is also battling rising costs of plastics, packaging paper, freight and labor.
Second-quarter net profit rose to $58.1-million (U.S.), or 42 cents a share, from $43.6-million, or 29 cents a share, a year earlier.
Excluding items, earnings were 33 cents a share, missing the analysts’ average estimate of 39 cents, according to Thomson Reuters I/B/E/S.
Net revenue rose 23 per cent to $908.5-million, beating the analysts’ average estimate of $854.8-million.
Last week, larger rival Mattel Inc. beat quarterly profit and sales estimates on strong sales of its Barbie dolls and toys based on the Cars 2 movie.
Hasbro’s entertainment lineup for this year included toys based on movies such as Transformers: Dark of the Moon and Thor. It is also making toys based on Captain America: the First Avenger, which is set to hit theaters this week.
In the third quarter, the company will launch its new Kre-O construction brand internationally and add Sesame Street-branded toys to its preschool business.