Hasbro Earnings Miss Expectations Amid Toys R Us Demise

PAWTUCKET, R.I. (AP) — Hasbro returned to a profit in its fourth quarter, but the toy company's performance still fell short of Wall Street's expectations as it continues to deal with the demise of Toys R Us.

Shares fell 7.3 percent in Friday premarket trading.

Hasbro Inc., whose brands include Nerf and Power Rangers, earned $8.8 million, or 7 cents per share, for the period ended Dec. 30. A year earlier it lost $5.3 million, or 4 cents per share.

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Stripping out one-time gains and costs, earnings were $1.33 per share. That's sharply below the $1.68 per share that analysts polled by Zacks Investment Research expected.

Revenue for the company based in Pawtucket, Rhode Island, dropped 13 percent to $1.39 billion, short of the $1.52 billion Wall Street predicted.

Chairman and CEO Brian Goldner said in a statement that Hasbro wasn't able to recapture as much of the Toys R Us business during the holidays as it expected. The company was also contending with changing consumer shopping behaviors in Europe and reduced retail inventory, he added.

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For the year, Hasbro reported an adjusted profit of $2.11 per share on revenue of $4.58 billion.

 

Source: AP

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Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research.

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