The company reported quarterly sales of $984.5m, which beat the analyst consensus estimate by 2.9%, largely driven by Magic: The Gathering.
Net revenue for Q2 is up +9% from $904m to $985, while YTD revenues are up +6% from £1,621m to $1,717. The revenue growth has largely been led by Magic: The Gathering tabletop and digital platforms, plus growth in the franchise brands Monopoly and Play-Doh and the launch of Power Rangers. Hasbro acquired the Power Rangers master toy licence in May 2018.
The continued success and popularity of partner brand Marvel’s superhero movies has also played a part in Hasbro’s positive results, with Avengers: Endgame and Spider-Man: Far From Home products highlighted by the company.
Net income fell to $13.4m, or 11 cents per share, in the quarter ended 30th June from $60.3m, or 48 cents per share, a year earlier, as the company took a pre-tax charge of $110.8m to settle US 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.
“Our investments are differentiating Hasbro’s portfolio and delivering profitable revenue streams, including continued Magic: The Gathering revenue growth in tabletop and digital,” said CEO Brian Goldner. “We grew revenues in the U.S. and Europe, and we believe we are well-positioned to deliver against our target of profitable growth for the full-year 2019.”
Hasbro shares were trading up 0.54% at $109 during Tuesday’s pre-market session. The stock has a 52-week high of $111.76 and a 52-week low of $76.84 cents.