The maker of Transformers and Nerf toys sharply boosted revenue, but the sales barely beat Wall Street's forecasts. Fred Katayama reports.
Hasbro profit rose 7 percent in the latest quarter, breezing past analysts' estimates. And demand for Transformers goods helped the toy maker's revenue shoot sharply higher. But sales barely beat Wall Street's forecasts. It was Hasbro's smallest earnings beat in more than one-and-a-half years. The company's high flying stock, which has risen 50 percent this year, dropped sharply at the start of trading, taking down rival Mattel's shares as well. Jefferies analyst Stephanie Wissink noted that Hasbros' revenue growth mostly came from its franchise business like Transformers and Nerf and wasn't broad-based, saying, "The partner brands growing just 1 percent looked objectively light relative to growth in the franchise brands." Sales of franchise brands rose nearly 21 percent. Revenue from emerging brands like Super Soaker and Easy-Bake Oven fell sharply.