Upcoming AWS Coverage on Mattel Post-Earnings Results
LONDON, UK / ACCESSWIRE / April 27, 2017 / Active Wall St. announces its post-earnings coverage on Hasbro, Inc. (NASDAQ: HAS). The Company posted its first quarter fiscal 2017 results on April 24, 2017. The toy maker surpassed top- and bottom-line expectations. Register with us now for your free membership at:
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One of Hasbro's competitors within the Toys & Games space, Mattel, Inc. (NASDAQ: MAT), released its Q1 2017 financial results on Thursday, April 20, 2017. AWS will be initiating a research report on Mattel in the coming days.
Today, AWS is promoting its earnings coverage on HAS; touching on MAT. Get our free coverage by signing up to:
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Earnings Reviewed
For the period ended March 31, 2017, Hasbro's net revenues increased 2% to $849.7 million compared to $831.2 million in Q1 2016. The Company's revenue numbers surpassed analysts' consensus of $818.3 million.
Hasbro's net earnings for Q1 2017 increased 41% to $68.6 million, or $0.54 per diluted share, compared to $48.8 million, or $0.38 per diluted share, in Q1 2016. The Company's reported net earnings included a $0.11 per diluted share benefit versus Q1 2016 from the adoption of FASB ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting. Hasbro's earnings surpassed Wall Street's forecasts of $0.38 per share.
Segment Performance
For Q1 2017, Hasbro's US and Canada segment's net revenues increased 2% to $451.6 million compared to $443.6 million in Q1 2016. Revenue growth in Hasbro Gaming and Emerging Brands offset a decline in Franchise Brands and Partner Brands. The US and Canada segment reported operating profit of $64.8 million, or 14.3% of net revenues, in the reported quarter compared to $78.3 million, or 17.7% of net revenues, in the year ago same period.
Hasbro's International segment's net revenues of $345.3 million in Q1 2017, essentially flat compared with $345.0 million in Q1 2016. For the International revenue growth in Franchise Brands, Hasbro Gaming and Emerging Brands was offset by a decline in Partner Brands. On a regional basis, Europe revenues declined 4%, while Latin America increased 16%, and Asia/Pacific declined 1%. Emerging markets revenues increased 20% in the quarter. International segment's operating profit was $0.5 million in Q1 2017 compared to $2.9 million in Q1 2016.
For Q1 2017, Hasbro's Entertainment and Licensing segment's net revenues increased 24% to $52.7 million compared to $42.5 million in Q1 2016. Digital gaming drove the quarterly revenue increase, including higher revenues at Backflip Studios. The Entertainment and Licensing segment's operating profit increased 108% to $11.3 million in the reported quarter, or 21.5% of net revenues, compared to $5.4 million, or 12.8% of net revenues, in the prior year's comparable period.
Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $253.3 million for Q1 2017, up 10%, versus $231.1 million in Q1 2016.
Hasbro's Q1 2017 Franchise Brand revenues increased 2% to $423.6 million driven by revenue growth in NERF, TRANSFORMERS, and MONOPOLY. The Company's Partner Brand revenues declined 18% on a y-o-y basis to $213.0 million. Revenue growth from BEYBLADE and DREAMWORKS' TROLLS was more than offset by expected declines in STAR WARS and MARVEL ahead of major theatrical releases later this year.
Hasbro's Gaming revenue surged 43% growth to $142.9 million driven by Hasbro's diverse gaming portfolio. The strong revenue increase was led by several new games, including SPEAK OUT, TOILET TROUBLE, and FANTASTIC GYMNASTICS, digital gaming, and several other gaming brands, including DUNGEONS & DRAGONS, BOP-IT and PIE-FACE. Hasbro's total gaming category grew 10% to $253.3 million. The Company's Emerging Brands revenue grew 25% to $70.2 million.
Dividend and Share Repurchase
During Q1 2017, Hasbro paid $63.4 million in cash dividends to shareholders. The Company's next quarterly cash dividend payment of $0.57 per common share is scheduled for May 15, 2017, to shareholders of record at the close of business on May 01, 2017.
During the reported quarter, Hasbro repurchased 218,000 shares of common stock at a total cost of $18.1 million and an average price of $82.82 per share. At quarter-end, $309.9 million remained available in the current share repurchase authorization.
Stock Performance
On Wednesday, April 26, 2017, the stock closed the trading session at $101.04, marginally falling 0.52% from its previous closing price of $101.57. A total volume of 1.13 million shares have exchanged hands. Hasbro's stock price surged 17.18% in the last three months, 21.96% in the past six months, and 18.17% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 30.70%. The stock is trading at a PE ratio of 23.27 and has a dividend yield of 2.26%.
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SOURCE: Active Wall Street