TV production business boosts Hasbro as toy shipments take a hit
Reuters
Published Oct 27, 2021 01:10
Updated Oct 27, 2021 01:25
By Uday Sampath Kumar
(Reuters) -Hasbro Inc beat quarterly profit estimates on Tuesday, helped by a rebound in its TV and film production business that cushioned some of the impact from toy shipment delays due to global supply chain bottlenecks.
The toymaker's shares rose 5% in early trading, despite the company's warning that its sales could take a hit during the crucial holiday shopping season.
Productions such as "My Little Pony" for Netflix (NASDAQ:NFLX) and the musical "Come From Away" for Apple (NASDAQ:AAPL) TV+ from Hasbro (NASDAQ:HAS)'s entertainment business boosted the unit's third-quarter revenue by 76% from a year ago, when filming was largely shutdown by the pandemic.
That helped offset some of the $100-million hit in delayed toy orders Hasbro had to endure in the quarter as factory shutdowns, a lack of container ships and long port delays pinched supply chains across the world.
The maker of "Transformers" toys said the majority of those orders had been delivered in recent weeks, as the company is expanding its shipping capacity and using more air freight.
Hasbro said it expects 2021 revenue to rise between 13% and 16%, but warned supply issues could impact its ability to achieve the high-end of its forecast.
Still, Chief Financial Officer Deborah Thomas was confident that the company's investments to get around supply bottlenecks would be enough to ensure there would not be a dearth of Nerf blasters or My Little Pony toys under Christmas trees come December
"We've got everything in place and there will be Hasbro toys and games on the shelves this holiday season," Thomas said on an analyst call.
Hasbro said quarterly adjusted net earnings rose 5% to $271.2 million, or $1.96 per share, beating analysts' estimates of $1.69 per share, but warned that higher freight costs would pressure margins in the fourth quarter.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.