Hasbro Has the Force Behind It

Hasbro the toymaker beat expectations of analysts for its most recent earnings report. The company can thank the overwhelming demand for its Star Wars and Jurassic World related products.

Net revenue at the toymaker in its boy’s category was up 24% to more than $593.1 million. Officials at the company cited sales of toys from both the latest Star Wars and Jurassic films as a big reason for the explosive growth in that category.

Overall, its net earnings during the third quarter ended at $207.6 million equal to $1.64 a share compared to last year during the same time of $180.4 million equal to $1.40 a share. The increase was 15%.

That exceeded analyst expectations of per share earnings of $1.52. Net revenues during the quarter remained flat at $1.47 billion. The only problem for the quarter was the strong U.S. dollar, which Hasbro said negatively impacted the company by $132 million for just the most recent quarter.

Revenue from the emerging markets fell by 15% in value of dollar, despite increasing by 14% in terms of local currency.

These results reflect how powerful licensing tie ups are that Hasbro has signed. The company has two of the biggest film companies in the world today.

Released during the summer, Jurassic World is now the third highest all time grossing film with total box office receipts globally of $1.67 billion with its sequel coming in 2018.

The latest Disney Star Wars: The Force Awakens should follow suit when it opens in December and likely breaks every record set in box offices with a possibility of more than $2 billion in global receipts.

Both of the films blueprints can be seen in every category including preschool. Revenues were up 17% to more than $219.6 billion because of a growth in its brand Play-Doh related to the shipments of the Jurassic World and Star Wars lines.

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