[ACCESSWIRE]
LONDON, UK / ACCESSWIRE / October 19, 2016 / Active Wall St. announces its post-earnings coverage on Hasbro Inc. (NASDAQ: HAS). The company released its third quarter fiscal 2016 result on October 17th, 2016. The number 2 U.S. toymaker delivered the highest revenue and earnings quarter in Hasbro's history, bolstered by strong demand for Disney Princess, Frozen and Trolls dolls. Register with us now for your free membership at: http://www.activewallst.com/register/.
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Earnings Reviewed
For the three months ended on September 25th, 2016, Hasbro reported that revenues increased 14% to $1.68 billion versus $1.47 billion in 2015. Q3 2016 revenues include a negative $2.8 million impact from foreign exchange. The revenue numbers were well above analysts' calling of $1.55 billion.
Net earnings for the reported quarter 2016 increased 24% to $257.8 million, or $2.03 per diluted share, compared to $207.6 million, or $1.64 per diluted share, in the year ago period. Analysts were projecting earnings of $1.74 per share.
Segment Performance
During Q3 2016, revenue from Hasbro's U.S. and Canada segment increased 16% to $932.8 million compared to $803.8 million in the year ago period. The U.S. and Canada segment reported 22% operating profit growth to $228.0 million, or 24.4% of net revenues, compared to $187.1 million, or 23.3% of net revenues, in 2015. International segment's net revenues increased 13% to $690.7 million compared to $612.6 million in 2015. Excluding an unfavorable $3.0 million impact of foreign exchange, Rhode Island-based company's International segment revenues grew 13%, increasing 17% in Europe, 12% in Latin America, and 1% in Asia/Pacific. Emerging markets increased approximately 15% absent the impact of foreign exchange. International segment's operating profit grew 17% to $133.1 million in Q3 2016, or 19.3% of net revenues, compared to $114.2 million, or 18.6% of net revenues in Q3 2015.
Entertainment and Licensing segment's net revenues increased 8% to $56.1 million compared to $52.1 million in the year earlier quarter, driven by growth in Consumer Products and Digital Gaming. The Entertainment and Licensing segment's operating profit decreased 13% to $14.1 million, or 25.1% of net revenues in the reported quarter, compared to $16.2 million, or 31.2% of net revenues in Q3 2015.
Product Category
During Q3 2016, Hasbro reported that Boys category revenues for Q3 2016 increased 2% to $605.5 million. Revenue growth in the quarter was driven by gains in Franchise Brand NERF and TRANSFORMERS, as well as shipments of YO-KAI WATCH. The revenue numbers were above analysts' consensus of $547.8 million. Games category revenues for the reported quarter increased 13% to $409.5 million, behind growth in multiple gaming formats including face-to-face gaming, off-the-board gaming, and digital gaming.
Girl's category revenues for Q3 2016 surged 57% to $462.0 million. The category benefited from shipments of Hasbro's line of DISNEY PRINCESS and DISNEY'S FROZEN fashion and small dolls and DREAMWORKS' TROLLS as well as growth in BABY ALIVE and FURBY products. The girls unit has witnessed growth for the third consecutive quarter. Additionally, Baby Alive and Furby products also supported sales in the quarter. Girls' toys revenue topped market expectations of $387.6 million. Hasbro's acquisition of the Disney Princess franchise which the company snatched away from Mattel Inc. (NASDAQ:MAT) in a 2014 deal, paid off in the company's latest results.
Preschool category revenues for Q3 2016 declined 8% to $202.8 million. Revenue growth in Franchise Brand PLAY-DOH was more than offset by declines in PLAYSKOOL HEROES and core PLAYSKOOL items.
Cash, Dividend and Share Repurchase
During Q3 2016 Hasbro paid $64.0 million in cash dividends to shareholders. The next quarterly cash dividend payment of $0.51 per common share is scheduled for November 15, 2016, to shareholders of record at the close of business on November 1, 2016.
During the reported quarter, Hasbro repurchased 598,800 shares of common stock at a total cost of $48.4 million and an average price of $80.87 per share. Through the first three quarters, the company repurchased 1,344,411 shares of common stock at a total cost of $106.2 million and an average price of $78.97 per share. At quarter-end, $373.1 million remained available in the current share repurchase authorization.
As of September 25th, 2016, Hasbro had Cash and Cash equivalents worth $830.37 million compared to Cash and Cash equivalents of $551.29 million as of September 27th, 2015. The company had long-term debts of 1.20 billion at the end of Q3 2016 compared to long-term debts of $1.55 billion at the end of Q3 2015.
Stock Performance
Hasbro's stock is trading slightly down by 0.45%, closing Tuesday's session at $81.45 on volume of 2.83 million shares, which was above the 3 months average volume of 1.23 million shares. The company's shares gained 5.33% and 15.64% in the last month and in the past twelve months, respectively. Additionally, the stock has surged 23.18% since the beginning of the year. The company's shares are trading a PE ratio of 21.34 and have a dividend yield of 2.50%.
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