Hasbro (NASDAQ:HAS) trounced analysts’ estimates for quarterly revenue and profit on Monday, bolstered by a recovery in the toymaker’s television production business and price increases to counter a hit from supply chain issues.
Revenue from Hasbro’s entertainment business jumped 54% in the fourth quarter ended Dec. 26, as the company delivered new episodes of the Showtime series "Yellowjackets" and released a new
"Clifford the Big Red Dog" movie.
In contrast, year-earlier results were knocked by production shutdowns brought on by the pandemic.
The return of Marvel superhero movies last year also propped up the company’s consumer products unit, with revenue up 9% on demand for toys based on characters from the films.
Hasbro, like rival Mattel, has been looking to generate more revenue from TV shows, movies and video games as it focuses on becoming a broader entertainment company rather than just a toymaker.
The company’s total net revenue rose 17% to $2.01 billion in the fourth quarter, beating analysts’ estimates of $1.87 billion, according to estimates.
On an adjusted basis, the company earned $1.21 per share, topping estimates of 88 cents, as price increases last year helped offset a surge in raw material and transportation costs.
Hasbro said it expects fiscal 2022 revenue to rise at a low single-digit rate. Analysts on average had estimated a 3.9% increase.
HAS caved $2.28, or 2.4%, to $91.64.
