Hasbro execs should send a nice “thank you” note to Disney for the better-than-expected Q1 financials the toy company reported this morning. The numbers sent its share price up about 4.6% in pre market trading, suggesting it will touch a new 52 week high.
Sales of toys related to Star Wars, Frozen, and the Disney Princess line largely propelled the results.
Hasbro’s net profit of $48.8 million in Q1 was up 82.8% vs the same period last year on revenues of $831.2 million, up 16.5%. The top line was well ahead of the $777.1 million that analysts anticipated. Earnings at 38 cents a share also handily beat expectations for 24 cents.
Demand for Star Wars merchandise “continued to be high” CEO Brian Goldner says, adding that he’s “very encouraged with global demand and our outlook for 2016.”
Investors weren’t certain that Hasbro would be able show this much growth compared to last year when it benefited from sales tied to Transformers as well as a multi-year streaming deal that included My Little Pony.
But sales of products that target boys grew 24% to $337 million while ones for girls were up 41% to $165 million. If you factor out the impact the strong dollar had on overseas sales, the boys’ number would up +28% with girls +48%. About 60% of Hasbro’s sales are made in U.S. dollars.
The toy company also said this morning that its investment in TV and film productions increased by a third compared to early 2015 to $12 million.