Hasbro Profit Dips by 25 Percent, Top Analysts Estimate

Hasbro Profit Dips by 25 Percent, Top Analysts Estimate

Hasbro, Inc. (NASDAQ:HAS) second quarter earnings decline by 25 percent to $43. 43 million or 33 cents per share, from its $58.05 million or 42 cents per share profit last year. The company managed to exceed the collective average estimate of analysts, of 24 cents per share.

The toy maker’s revenue also fell by 10.7 percent from its $908.5 million revenue in 2011 to the current $811.5 million. Its revenue did not meet the $830 million average estimate of analysts.

According to the company’s report, the profits and revenue of the company is affected primarily by lower consumer demand in the North America and international markets, as well as the negative impact of foreign currency exchanges.

Brian Goldner, President and Chief Executive Officer said, ‘‘We’ve focused on aligning our shipments with the strongest periods of consumer demand. As a result, it is not surprising to see our U.S. and Canada net revenues down through the first six months. However, we are very encouraged about the quality of our execution and the profitability improvements we are delivering.’’

In addition, Goldner is positive that Hasbro will maintain its growth in 2012 based on the company’s expectations, while executing changes in its shipments in the latter part of the year. He also said that the company is focused in boosting its profitability in the near term.

In Canada and United States, Hasbro’s revenue dropped by 19 percent year over year to $406 million, and its international segment also plunged by 4 percent year over to $360.5 million. Its operating profits in both North American countries recorded 6 percent growth to $60.9 million due to higher quality inventory. However, its operating profit in the international segment declined by 12 percent to $29.9 million.

The Entertainment and Licensing segment was the only one that gained profit during the second quarter among its four business segments. This segment recorded 59 percent increase in sales year over year to $43.2 million. The Boys segment was down 16 percent to $389.1 million; Girls segment fell by 13 percent to $104.2 million, and the Games segment also dropped by 8 percent to $213.8 million.

Although the company reported a dismal profit for the second quarter, it is expecting to close the year 2012 with a 2 to 4 percent revenue growth. Deborah Thomas, Chief Financial Officer of the company explained that it will be able to achieve its expectations for the second half of the year by concentrating on returning its historical level of operating profit margin in North American market.

Hasbro’s current total asset is $4.01 billion. The company’s shares are up by 3.55 percent to $35.03 per share on Monday (July 23 as of 2:00 PM ET).